Question
5. Stocks A, B, and C have the same expected return and standard deviation. The following table shows the correlations between the returns on these
5. Stocks A, B, and C have the same expected return and standard deviation. The following table shows the correlations between the returns on these stocks: (4 points) Stock A Stock B Stock C Stock A 1 Stock B 0.9 1 Stock C -0.5 -0.7 1 3 Given these correlations, the portfolio constructed from these stocks having the lowest risk is a portfolio: a. Equally invested in stocks A and B. b. Equally invested in stocks A and C. c. Equally invested in stocks B and C. d. Totally invested in stock C.
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The Sterling Bonds And Fixed Income Handbook
Authors: Mark Glowrey
1st Edition
0857190423, 978-0857190420
