Question
The expected return on stocks A and B are 20%, and 30%, respectively. The standard deviation of stocks A and B are 20%, and 40%,
The expected return on stocks A and B are 20%, and 30%, respectively. The standard deviation of stocks A and B are 20%, and 40%, respectivley. The correlation coefficient between the two stocks is negative one. You plan to form a portfolio from stocks A and B that will yield zero risk. What proportions of your money will you invest in stock A?
Multiple Choice
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1/2
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1/3
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1/4
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2/3
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International Finance
Authors: Keith Pilbeam
3rd Edition
1403948372, 978-1403948373
