Assume that investor I holds a portfolio P consisting of stock A and stock B. Stock A has an expected return of 8% and a standard deviation of
15.1%. Stock B has an expected return of 15% and a standard deviation of 13.3%. Stock A and Stock B are perfectly negatively correlated. There
is no risk-free asset. I minimizes the risk of her portfolio. What should be the weight for stock A?

Answer rating: 100% (QA)

To minimize the risk of the portfolio investor I should allocate the weig... View the full answer