#risk-management

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Anonymous
Jan 24

The returns on X and Y are perfectly negatively correlated. The standard deviation on these securities are 25 and 15 per cent respectively. How much needs to be invested in X to eliminate risk?

The returns on X and Y are perfectly negatively correlated.  The standard deviation on these securities are 25 and 15 per cent respectively.  How much needs to be invested in X to eliminate risk entirely

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