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Business, 15.04.2020 21:04 dommalb

Consider two stocks X and Y with the following expected returns (in percent) and standard deviations. How much of your $10,000 total investment should you invest in stock Y if you would like a portfolio with zero risk and the correlation between the two stocks is -1 (perfectly negatively correlated)?

Stock Expected return Standard deviation

X 10 75
Y 20 50

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Answers: 1

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Consider two stocks X and Y with the following expected returns (in percent) and standard deviations...
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