Question
Stock A has a 1.5% expected return and a 5% variance. Stock B has a 2% expected return and a 6% variance. An equally weighted
Stock A has a 1.5% expected return and a 5% variance. Stock B has a 2% expected return and a 6% variance. An equally weighted portfolio of Stock A and Stock B has an expected return of 1.9% and a variance of 4.2%. Which investment would you prefer and why?
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The Handbook Of Equity Derivatives
Authors: Jack Clark Francis, William W. Toy, J. Gregg Whittaker
1st Edition
0471326038, 978-0471326038
