Given the following information: A smart investor is operating in a global market that includes two...

Transcribed Image Text:

Given the following information: A smart investor is operating in a global market that includes two securities, A and B. from two major markets. A has an expected return of 15% and a standard deviation of 10%. B has an expected return of 20% and a standard deviation of 15%. A and B are perfectly negatively correlated Compute the relevant weights to construct an international portfolio with zero risk and obtain the return on such a portfolio. * The relevant weights for A and B to construct a portfolio of zero risk are: Given the following information: A smart investor is operating in a global market that includes two securities, A and B. from two major markets. A has an expected return of 15% and a standard deviation of 10%. B has an expected return of 20% and a standard deviation of 15%. A and B are perfectly negatively correlated Compute the relevant weights to construct an international portfolio with zero risk and obtain the return on such a portfolio. * The relevant weights for A and B to construct a portfolio of zero risk are:

Answer rating: 100% (QA)

To construct a portfolio with zero risk you need to find the weights of securities A and B that will ... View the full answer