Originally Posted by

**NixLUKE** On one of my exam past papers A question reads

The parameters of the opportunity set are E(rD)=8%, E(rE)=13%, s.d=12%, s.d=20% and p(D,E)=0.25. (i)Calculate global minimum variance if the portfolio consists of D and E. and (ii) calculate the expected return when the variance is at the global minimum.

I have no idea what I am supposed to do here can anyone offer me some advice on how to go about the question?

The solution I am given is....

wd=0.8019, we=0.1981 s.d(p)=0.1981 E(rp)=11.29%