Question
Suppose short sales are prohibited. In order to construct a riskless portfolio using two risky stocks, one would need to find two stocks with a
Suppose short sales are prohibited. In order to construct a riskless portfolio using two risky stocks, one would need to find two stocks with a correlation coefficient of -1.0.
The answer is -1.0 so please explain why.
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ISE Analysis For Financial Management
Authors: Robert C. Higgins Professor, Jennifer Koski
13th International Edition
1265042632, 9781265042639
