Expected return AT&T= 0.10, Expected return Microsoft= 0.21, std deviation AT&T=0.15, std deviation Microsoft =0.25 1) what is the minimum-risk (standard deviation) portfolio of AT&T and Microsoft if the correlation between the two stocks is 0? 0.5? 1? -1? what do you notice about the change in the allocations between AT&T and Microsoft as the correlation coefficient moves from -1 to 0? to 0.5? to +1? why might this be? what is the standard deviation of each these minimum-risk portfolios?
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