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You are looking at two shares: X1: Average return: 0.35% Standard deviation: 3% X2: Average return: 0.17% Standard deviation: 2.24% Correlation coefficient here is: 0.2362253
You are looking at two shares:
X1:
Average return: 0.35%
Standard deviation: 3%
X2:
Average return: 0.17%
Standard deviation: 2.24%
Correlation coefficient here is: 0.2362253
The risk- free rate is: 0.04=4%
Explain why buying these two stocks could turn out profitable for you using Sharpe Ratio or other key terms.
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