Problem: You are planning to invest $200,000. Two securities X and Y are available, and you can invest in either of them or in a portfolio with some of each. The correlation coefficient is of X and Y is -0.50. Assuming the following additional data, calculate the weight of A in the portfolio that produces the minimum risk portfolio.
Stock X Stock Y "Roh"
Expected return 15.0% 12.8% -0.5
Standard deviation 20.0% 25.7% -0.5