respectively, and they are perfectly negatively correlated. What portfolio of these two stocks has zero risk? The portfolio of these two stocks that has zero risk is % of Avon and % of Nova. (Round to two decimal places.)
respectively, and they are perfectly negatively correlated. What portfolio of these two stocks has zero risk? The portfolio of these two stocks that has zero risk is % of Avon and % of Nova. (Round to two decimal places.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Suppose Avon and Nova stocks have volatilities of
52%
and
22%
, respectively, and they are perfectly negatively correlated. What portfolio of these two stocks has zero risk? The portfolio of these two stocks that has zero risk is
%
of Avon and
%
of Nova. (Round to two decimal places.)
Transcribed Image Text:Suppose Avon and Nova stocks have volatilities of 52% and 22%, respectively, and they are perfectly
negatively correlated. What portfolio of these two stocks has zero risk?
The portfolio of these two stocks that has zero risk is
decimal places.)
% of Avon and% of Nova. (Round to two
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