Solution) Risk-Averters Inc. invests 2/3 of its funds in General Mills Stock and the remainder in Budweiser Be


Question: Risk-Averters Inc. invests 2/3 of its funds in General Mills Stock and the remainder in

Budweiser Beer. On past evidence, the standard deviations of returns are 20 percent for

General Mills and 40 percent for Budweiser Beer. Suppose the correlation coefficient

between General Mills and Budweiser is -1.0. What is the standard deviation of the return

on Risk-Averter's portfolio?

Price: $2.99
Solution: The solution consists of 1 page
Deliverables: Word Document

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