Consider the Following Probability Distribution for Stocks a and B

question 42

Multiple Choice

Consider the following probability distribution for stocks A and B: $\begin{array}{cccc}\text { State } & \text { Probability } & \text { Return on Stock A } & \text { Return on Stock B } \\1 & 0.10 & 10 \% & 8 \% \\2 & 0.20 & 13\% & 7\% \\3 & 0.20 & 12\% & 6\% \\4 & 0.30 & 14\% & 9\% \\5 & 0.20 & 15\% & 8 \%\end{array}$
Let G be the global minimum variance portfolio. The weights of A and B in G are __________ and __________, respectively.

• A) 0.40; 0.60
• B) 0.66; 0.34
• C) 0.34; 0.66
• D) 0.77; 0.23
• E) 0.23; 0.77

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A periodic fee paid for the use of property or land.

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The foregone benefit that would have been derived from an option not chosen.