Question
The rate of stock A is 12% and B is 10% the stocks have a correlation coefficient of -1.0. Of stock A increase to 15%
The rate of stock A is 12% and B is 10% the stocks have a correlation coefficient of -1.0. Of stock A increase to 15% what is the expected movement of stock B?
a) decline to 7% B) a decline to 7.5% c) An increase to 13% D) an increase to 12.5%
please explain
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Public Finance and Public Policy
Authors: Jonathan Gruber
5th edition
1464143331, 978-1464143335
