Question
You're considering forming a risk-free portfolio composed of two assets with the following information. Under which scenario will you reach your goal? Asset A Asset
You're considering forming a risk-free portfolio composed of two assets with the following information. Under which scenario will you reach your goal?
| Asset A | Asset B | |
| Expected Return | 10% | 15% |
| Standard Deviation | 20% | 30% |
Question 11 options:
| Correlation (A,B) = -1; Weight (A) = 60%. | |
| Correlation (A,B) = 0; Weight (A) = 60%. | |
| Correlation (A,B) = -1; Weight (A) = 40%. | |
| Correlation (A,B) = 0; Weight (A) = 40%. | |
| Correlation (A,B) = 0; Weight (A) = 60%. | |
| Correlation (A,B) = 1; Weight (A) = 40% |
You're considering forming a risk-free portfolio composed of two assets with the following information. Under which scenario will you reach your goal?
| Asset A | Asset B | |
| Expected Return | 10% | 15% |
| Standard Deviation | 20% | 30% |
Question 11 options:
| Correlation (A,B) = -1; Weight (A) = 60%. | |
| Correlation (A,B) = 0; Weight (A) = 60%. | |
| Correlation (A,B) = -1; Weight (A) = 40%. | |
| Correlation (A,B) = 0; Weight (A) = 40%. | |
| Correlation (A,B) = 0; Weight (A) = 60%. | |
| Correlation (A,B) = 1; Weight (A) = 40% |
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Handbook Of Environmental And Sustainable Finance
Authors: Vikash Ramiah, Greg N. Gregoriou
1st Edition
012803615X, 978-0128036150
