Question
Stock X has an average realised return of 24.8% and stock Z has an average realised return of -3.1%. The variances for stock X and
Stock X has an average realised return of 24.8% and stock Z has an average realised return of -3.1%. The variances for stock X and stock Z are 0.125447467 and 0.032239975 respectively. Covariance is 0.045469287.
The variance on a portfolio that is made up of equal investments in Stock X and Stock Z stock is closest to:
A: 0.12
B: 0.06
C: 0.62
D: 0.05
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Fundamentals Of Futures And Options Markets
Authors: John C. Hull
4th Edition
0130176028, 9780130176028
