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1) Calculate the risk (standard deviation) of the following two-security portfolio if the correlation coefficient between the two securities is equal to -0.6. Return STD.
1) Calculate the risk (standard deviation) of the following two-security portfolio if the correlation coefficient between the two securities is equal to -0.6. Return STD. Deviation Weight (in the port) Security A 10 0.3 Security B 20 0.7 2) Is it a great idea to combine the above assets (A and B) in a portfolio? Explain in 4 short sentences.
Return
STD. Deviation Weight (in the port)
Security A 10 0.3
Security B 20 0.7
2) Is it a great idea to combine the above assets (A and B) in a portfolio? Explain in 4 short sentences.
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Development Finance Innovations For Sustainable Growth
Authors: Nicholas Biekpe, Danny Cassimon, Andrew William Mullineux
1st Edition
331954165X, 978-3319541655
