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 is1 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

Question: 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

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 isâˆ’1.

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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