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Question Three XYZ Ltd has placed its short - term investments in two securities A and B as detailed below; table [ [ Portfolio
Question Three
XYZ Ltd has placed its shortterm investments in two securities A and as detailed below;
tablePortfolio Expected returns,Standard deviation,ProportionA B
Required;
a Determine the correlation coefficient to derive a portfolio standard deviation of
b If the weights of the two securities A and is modified to : what would portfolio risk be
c What would the correlation be if the desired portfolio standard deviation is and the assets are combined in equal proportion?
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