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Consider the following probability distribution for stocks A and B: The standard deviations of stocks A and B are _____ and _____, respectively. A) 1.5%; 1.9%.
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Answer The chart above assigns to each point on the sphere (away from the meridian) (a) Hyperboloid of One Sheet: y1. 2 a2 + y2. 2 b2 - y3. 2 . lie on the same ray from the origin, and xi = 1 r xi We also call such a gizmo a symmetric bilinear form. A m
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sification and showed exactly how an investor can reduce the standard deviation of portfolio returns by choosing stocks that do not move exactly together. But.
A continuous probability distribution contains an infinite number of outcomes and . Alternative solution: First compute the return for each stock using the CAPM .