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Suppose Microsofts stock has an expected return of 22% and a standard deviation of 50%, while Pepsis has an expected return of 10% and a
Suppose Microsofts stock has an expected return of 22% and a standard deviation of 50%, while Pepsis has an expected return of 10% and a standard deviation of 23%. If these two stocks were perfectly negatively correlated (their correlation coefficient is -1), calculate percent of portfolio invested in Pepsi that removes all risk.
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