# Question: Consider a position consisting of 100 in stock A and

Consider a position consisting of $100 in stock A and $200 in stock B. Suppose that the daily volatilities of the two stocks are 0.8% and 1.5%, respectively, and the coefficient of correlation between the two is p. At which value of p will the 10-day VaR (value at risk) for this portfolio be minimized? Please give a proof to support your answer.

## Answer to relevant Questions

Consider two securities A and B, both of which are exposed to a common risk factor (thus the market price of risk should be the same for them). The expected returns are 9% and 12%, respectively. The volatility of A is 10%. ...Define and give examples of three strategies that are rooted in instruction design theory referred to in our Course Content: 1. Organizational strategies.2. Delivery strategies.3. Management strategies.(a) Find the radius of the circle if its sector with a central angle θ = ½ radian has an area A = 9m2.(b) A car’s wheels are 70cm in diameter. What is the sppeed of the car, in km/hour, if the wheels rotate at 180 ...Alpha Great Construction was the best selection to build the Stoddard Temple for the amount of $2,500,000. The project broke ground in 2010 and was then completed in 2011. Below the cost and other data are shown below:Alpha ...We’ve talked about rules-based versus principles-based accounting standards. Should we have rules-based ethics standards? Why or why not? Should they tell you exactly what to do in specific ethical situations?Post your question