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Consider two perfectly negatively correlated risky stocks EY and DZ. EY has an expected rate of return of 10% and a variance of 0.0169. DZ
Consider two perfectly negatively correlated risky stocks EY and DZ. EY has an expected rate of return of 10% and a variance of 0.0169. DZ has an expected rate of return of 6% and a variance of 0.04. The risk-free portfolio that can be formed with the two stocks will earn rate of return. O a. 8.42% O b. 9.44% O c. 7.58% O d. 6.67% A bond that can be retired prior to maturity by the issuer is aan) bond. O a secured O b. callable O c. unsecured O d. convertible
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