Suppose tex stock has a volatility of 40 and mex stock has, Ask an Expert

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Suppose Tex stock has a volatility of 40%?, and Mex stock has a volatility of 22%.

If Tex and Mex are? uncorrelated,

a. Construct a portfolio with positive weights in both stocks and that has the same volatility as MEX alone.

b. What portfolio of the two stocks has the smallest possible volatility?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92857222

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