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Stocks A, and B are newly issued securities. The following expected return and the standard deviation of current returns are available. a) The correlation coefficient
Stocks A, and B are newly issued securities. The following expected return and the standard deviation of current returns are available. a) The correlation coefficient is -1 between security A and B. Find the expected return on the minimum variance portfolio constructed from these two assets alone. b) Assume CAPM holds. Determine which of A and B is over-valued or undervalued
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