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Author Question: The graph below shows the feasible set of risks and returns for portfolios of two assets. What is ... (Read 28 times)

chandani

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Question 1

Stocks A and B are perfectly negatively correlated (ρ1,2 = -1) and their standard deviations are 0.20 and 0.30 respectively. What is the standard deviation of a portfolio with 50% invested in Stock A and 50% invested in Stock B?
◦ 5%
◦ 6%
◦ 7%
◦ 8%
◦ 9%

Question 2

The graph below shows the feasible set of risks and returns for portfolios of two assets. What is the correlation of the two assets?

◦ -1
◦ 0
◦ +1


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Marked as best answer by chandani on Apr 25, 2021

trog

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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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chandani

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


gcook

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

 

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