Question
11-4 Stock A has a volatility of 56% and a correlation of 29% with your current portfolio. Stock B has a volatility of 82% and
11-4
Stock A has a volatility of 56% and a correlation of 29% with your current portfolio. Stock B has a volatility of 82% and a correlation of 29% with your current portfolio. You currently hold both stocks. Which of the following choices below will increase the volatility of your portfolio: (i) selling a small amount of stock B and investing the proceeds in stock A, or (ii) selling a small amount of stock A and investing the proceeds in stock B?
The marginal contribution to risk for stock A is _____%. (Round to one decimal place.)
The marginal contribution to risk for stock B is _____%. (Round to one decimal place.)
Selling a small amount of stock A and investing the proceeds in stock B.
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The Dark Side Of Valuation
Authors: Aswath Damodaran
1st Edition
013040652X, 9780130406521
