Chris asks…Two investments opportunities (business statistics)?Suppose you have two investment opportunities: A and B. Also, suppose that the correlation coefficient between A and B is +0.70. Assume that the returns on each of the investments have the same, positive mean (say 10%) and standard deviations (say 2%).
1)What would your gain or loss be if you invested 50% of your resources on A and 50% of your resources on B? More than 10%? Less than 10%? Or exactly 10%? Explain.
2) How does
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