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Lets say that you a new investor would like to create your first mock portfolio with a standard deviation of zero. Your choices are Stock
Lets say that you a new investor would like to create your first mock portfolio with a standard deviation of zero. Your choices are Stock D which has expected return of 14% and standard deviation of 22%. Stock E which has expected return of 16% and standard deviation of 28%. The two stocks have a negative correlation coefficient of negative 1.
As a new investor, what % of your investment should go into stock D?
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