Mathematics, 03.03.2020 04:23 ianmorales4894
The stocks of company X are sold at $5 per share. Stocks of company Y are sold at $25 per share. According to a broker, 1 share of each company can either gain $1, with probability 0.5, or lose $1, with probability of 0.5, independently of the other company. Which of the following portfolios has the lowest risk:
a.50 stocks of A
b.25 stocks of A + 5 stocks of B
c.20 stocks of A + 6 stocks of B
Answers: 1
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The stocks of company X are sold at $5 per share. Stocks of company Y are sold at $25 per share. Acc...
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