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1- Find the optimal weights for a zero-risk portfolio of the two stocks A and B. We assume that the two stocks are a) Perfectly
1-
Find the optimal weights for a zero-risk portfolio of the two stocks A and B. We assume that the two stocks are
a) Perfectly and negatively correlated.
b) Perfectly and positively correlated
2-
(a) Draw the CAL of your portfolio on an expected returnstandard deviation diagram. What is the slope of the CAL? Show the position of your client on your funds CAL.
given:
Expected return = 15%
Standard deviation = 19.6%
17.5% in stock A
22.4% in stock B
30.1% in stock C
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