If there are two risky portfolios that have a correlation


1. If there are two risky portfolios that have a correlation of -1 with positive investment weights, what would the expected rate of return on this portfolio be?

2. Compute the covariance of H and F.

3. Would the tangency portfolio invest in more or less H if the risk-free rate were 3% instead of 4%? (Hint: Think visually.)

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Financial Management: If there are two risky portfolios that have a correlation
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