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To achieve a zero standard deviation for a portfolio, calculate the weights of stock A and stock B, assuming the correlation coefficient is -1. Use the following information. (Round intermediate calculations and final answers to 2 decimal places, e.g. 31.21%.) Expected return on State of the economy Probability of Expected return on occurrence stock A in this state stock B in this state High growth 30% 39.5% 56.5% Moderate growth 25% 18.5% 26.5% Recession 45% -6.5% -16.5% Weight of stock A Weight of stock B % % do

To achieve a zero standard deviation for a portfolio, calculate the weights of stock A and stock B, assuming the correlation coefficient is -1. Use the following information. (Round intermediate calculations and final answers to 2 decimal places, e.g. 31.21%.) Expected return on State of the economy Probability of Expected return on occurrence stock A in this state stock B in this state High growth 30% 39.5% 56.5% Moderate growth 25% 18.5% 26.5% Recession 45% -6.5% -16.5% Weight of stock A Weight of stock B % % do

Essentials Of Investments
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
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To achieve a zero standard deviation for a portfolio, calculate the weights of stock A and stock B, assuming the correlation coefficient is -1. Use the following information. (Round intermediate calculations and final answers to 2 decimal places, e.g. 31.21%.) Expected return on State of the economy Probability of Expected return on occurrence stock A in this state stock B in this state High growth 30% 39.5% 56.5% Moderate growth 25% 18.5% 26.5% Recession 45% -6.5% -16.5% Weight of stock A Weight of stock B % % do
Transcribed Image Text:To achieve a zero standard deviation for a portfolio, calculate the weights of stock A and stock B, assuming the correlation coefficient is -1. Use the following information. (Round intermediate calculations and final answers to 2 decimal places, e.g. 31.21%.) Expected return on State of the economy Probability of Expected return on occurrence stock A in this state stock B in this state High growth 30% 39.5% 56.5% Moderate growth 25% 18.5% 26.5% Recession 45% -6.5% -16.5% Weight of stock A Weight of stock B % % do
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