To achieve a zero standard deviation for a portfolio, calculate the weights of stock A and stock
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To achieve a zero standard deviation for a portfolio, calculate the weights of stock A and stock B in Practice Problem 35, assuming the correlation coefficient is−1.
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State of the Probability of Expected return on Expected return on occurrence stock A in this state stock B in this state economy High growth Moderate growth Recession 255% 20% 55% 40% 20% -10% 55% 25% 20%
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Related Book For
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
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