Suppose Tex stock has a volatility of 40%, and Mex stock has a volatility of 20%. If

Question:

Suppose Tex stock has a volatility of 40%, and Mex stock has a volatility of 20%. If Tex and Mex are uncorrelated,

a. What portfolio of the two stocks has the same volatility as Mex alone?

b. What portfolio of the two stocks has the smallest possible volatility?

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...