Question
14. Shares in Hot Tea and Cold Ice are perfectly negatively correlated. Share Expected Return (R) Standard deviation () Hot Tea 18 12 Cold Ice
14. Shares in Hot Tea and Cold Ice are perfectly negatively correlated. Share Expected Return (R) Standard deviation () Hot Tea 18 12 Cold Ice 12 6
a. Calculate the expected return from a portfolio consisting of 25 percent of Hot tea and 75 percent of Cold Ice. (1 mark) b. How would you allocate the fund to achieve a zero standard deviation (2 marks)
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Carbon Markets Or Climate Finance?
Authors: Axel Michaelowa
1st Edition
0415743435, 978-0415743433
