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A portfolio is created by investing equally into four stocks: Stock A, Stock B, Stock C, and Stock D. The volatilities of the stock are
A portfolio is created by investing equally into four stocks: Stock A, Stock B, Stock C, and Stock D. The volatilities of the stock are 21%, 26%, 36%, and 50% respectively. Assume that the returns of the stocks are independent from one another. Find the correlation between the return of Stock A and the return of the portfolio. 0.2996 0.3356 0.3176 0.2816 O 0.2637
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Trading Financial Derivatives
Authors: Kas Salazar ,Gunter Meissner
1st Edition
0536008280, 978-0536008282
