Multiple Choice
Cinderella plans to form a portfolio with two securities: Jaq and Gus.The correlation between the two securities is -1.Given the following forecasts,what are the weights in Jaq and Gus that will set the standard deviation of the portfolio equal to zero?
A) Portfolio weights in Jaq and Gus are 74.37% and 25.63%, respectively
B) Portfolio weights in Jaq and Gus are 25.63% and 74.37%, respectively
C) Portfolio weights in Jaq and Gus are 60.51% and 39.49%, respectively
D) Portfolio weights in Jaq and Gus are 39.49% and 60.51% respectively
Correct Answer:
Verified
Correct Answer:
Verified
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