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Risk Free Asset Stock A Stock B w1 75% 45% -20% w2 15% 30% 55% E(r) 2% 8% 16% std 0% 10% 20% We aim
| Risk Free Asset | Stock A | Stock B | |
| w1 | 75% | 45% | -20% |
| w2 | 15% | 30% | 55% |
| E(r) | 2% | 8% | 16% |
| std | 0% | 10% | 20% |
We aim to construct a portfolio P that invests 6,000 USD in portfolio 1 and 4,000 USD in portfolio 2
Suppose that the correlation between stock A and stock B is -1. Is the market in equilibrium?
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Healthcare Finance An Introduction To Accounting And Financial Management
Authors: Louis C. Gapenski
5th Edition
1567934250, 978-1567934250
