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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 return ... (Read 189 times)

jparksx

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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 ( = -1).
 
  What set of weights yields a portfolio with a zero variance?
  A) 2/3 in Stock A; 1/3 in Stock B
  B) 2/3 in Stock B; 1/3 in Stock A
  C) 2 in Stock A; -1 in Stock B
  D) 2 in Stock B; -1 in Stock A
  E) None of the above.

Question 2

Two key components of a prudent capital structure are the debt maturity composition and the debt
  to equity composition.
 
  Indicate whether the statement is true or false


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frejo

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jparksx

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Reply 2 on: Jul 10, 2018
Great answer, keep it coming :)


mohan

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

 

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