The weights of K and L in the global minimum variance portfolio are _____ and _____,respectively.
A)0.24; 0.76
B)0.50; 0.50
C)0.46; 0.54
D)0.45; 0.55
E)0.76; 0.24

Question

Quizplus · Accepted Answer

The weights in a global minimum variance portfolio are calculated based on the variances and covariances of the assets. The given weights 0.46 and 0.54 are the correct proportions that minimize the portfolio's variance.

The Weights of K and L in the Global Minimum