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The annual returns of three stocks are given below. Two of them ( Air America and Air Brazil ) are airline stocks and one (
The annual returns of three stocks are given below.
Two of them Air America and Air Brazil are airline stocks
and one Star Oil is an oil stock.
In general, when oil prices go up airline company stocks go
down and oil company stocks go up
Create a portfolio to diversify risk by mixing of Air
America and of Star Oil stocks.
How much is the portfolio's annual return?
Notice that annual return is the same for portfolio and
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