Question
3.Stocks offer an expected rate of return of 10% with a standard deviation of 20% and gold offers an expected return of 5% with a
3.Stocks offer an expected rate of return of 10% with a standard deviation of 20% and gold offers an expected return of 5% with a standard deviation of 25%.
1.In light of the apparent inferiority of gold to stocks with respect to both mean return and volatility, would anyone hold gold?
2.How would you answer (a) if the correlation coefficient between gold and stocks were 1?
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Financial Management For Public Health And Not For Profit Organizations
Authors: Steven A. Finkler
2nd Edition
0131471988, 978-0131471986
