Calculate the DEAR for the following portfolio with the correlation coefficients and then with perfect...
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Calculate the DEAR for the following portfolio with the correlation coefficients and then with perfect positive correlation between various asset groups. Assets Estimated DEAR $300,000 200,000 250,000 (Ps.ex) -0.10 (Ps.B) 0.75 (PEX.B) 0.20 Stocks (S) Foreign exchange (FX) Bonds (B) What is the amount of risk reduction resulting from the lack of perfect positive correlation between the various asset groups
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