Stock A's annual returns have a standard deviation of 26%. Stock B's annual returns have...
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Finance
Stock A's annual returns have a standard deviation of 26%. Stock B's annual returns have a standard deviation of 78%. The two stocks have a correlation of 0. Use calculus to find out what percentage of your money you should invest in Stock A in order to minimize the standard deviation of a portfolio of A and B. Go out four decimals - in other words, you should write 31.68% as.3168. Answer: Check
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