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homework please help.... ahhhh

Loserboi
Posts: 1,232
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12/5/2012 11:50:56 PM
Posted: 4 years ago
I dont know if any of you guys are in finance for college, but those who have taken it please help me.

Volatiles of two companies are 57% and 26%. They are perfectly negatively correlated. What portfolio of these two stocks has zero risk?

Answer will be a percentage, and involves the quadratic formula.
To arrive at quadratic formula you use the volatility of the portfolio formula. (I think)
johnnyboy54
Posts: 6,362
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12/6/2012 12:27:29 AM
Posted: 4 years ago
Okay I haven't had to use the quadratic formula and I am a finance measure.

Are those numbers the Beta's of the stock? What is the measure of volatility?
I didn't order assholes with my whiskey.
johnnyboy54
Posts: 6,362
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12/6/2012 12:28:35 AM
Posted: 4 years ago
At 12/6/2012 12:27:29 AM, johnnyboy54 wrote:
Okay I haven't had to use the quadratic formula and I am a finance major.

Are those numbers the Beta's of the stock? What is the measure of volatility?

fixed
I didn't order assholes with my whiskey.