Question
Suppose an investor has two assets whose standard deviation of returns is 25% and 45%. The assets are perfectly negatively correlated. What asset weights will
Suppose an investor has two assets whose standard deviation of returns is 25% and 45%. The assets are perfectly negatively correlated. What asset weights will eliminate all portfolio risk?
Select one:
A. 64% and 36%.
B. 34% and 66%.
C. 25% and 45%
D. 50% and 50%.
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Fundamentals Of Investing
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14th Edition
0135175216, 978-0135175217
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