You are in a world where there are two assets: gold and stocks. You are...
80.2K
Verified Solution
Link Copied!
Question
Finance
You are in a world where there are two assets: gold and stocks. You are interested in investing your money in one or both of these assets. You collect the following data on the returns of these two assets over the past six years: Gold Stock Market Average Return 10% 18% Standard Deviation 30% 22% Your estimate of the correlation between gold and stocks is negative -0.40. What are the weightings of a portfolio composed of gold and stocks that has the lowest possible risk? Select one: a. 39% in gold and 61% in stocks b. 43% in gold and 57% in stocks c. 61% in gold and 39% in stocks d. 57% in gold and 43% in stocks e. 33% in gold and 67% in stocks
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.