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Author Question: Stock A has an expected return of 10% and a standard deviation of 10%. Stock B has an expected ... (Read 93 times)

casperchen82

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on: Apr 25, 2021

Question 1

Risk that affects all firms is called
◦ management risk.
◦ nondiversifiable risk.
◦ diversifiable risk.
◦ total risk.

Question 2

Stock A has an expected return of 10% and a standard deviation of 10%. Stock B has an expected return of 15% and a standard deviation of 20%. The two stocks are perfectly negatively correlated (ρ1,2 = -1). What set of weights yields a portfolio with a zero variance?
◦ 2/3 in Stock A; 1/3 in Stock B
◦ 2/3 in Stock B; 1/3 in Stock A
◦ 2 in Stock A; -1 in Stock B
◦ 2 in Stock B; -1 in Stock A
◦ None of these.
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Marked as best answer by casperchen82 on Apr 25, 2021

courtney_bruh

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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casperchen82

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Reply 2 on: Apr 25, 2021
Wow, this really help

scikid

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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