Question
The following data are give: Stock X :Y Expected return (in %) 25 & 22, Variance of return ( in % ) 18 and 16,
The following data are give:
Stock X :Y Expected return (in %) 25 & 22, Variance of return ( in % ) 18 and 16, Co-variance (in %) 2 and 8. The combination of the two stocks will have lesser risk than the risk of either asset taken alone if coefficient of determination between Y an X stock is less than what?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
15th edition
134796551, 134796550, 978-0134796550
