Given the Following Information on Three Stocks $\sigma$ = -05333
Bc
Now Suppose You Diversify into Two Securities

question 38

Essay

Given the following information on three stocks:
$\sigma$ = -.05333
bc
Now suppose you diversify into two securities. Given all choices, can any portfolio be eliminated? Assume equal weights.

---

Definitions:

Preexisting Duty Rule

A legal principle that an existing obligation or duty cannot serve as consideration for a new contract.

Rescission

The act of canceling a contract, returning both parties to their pre-contractual situation.

Mutually Agree

A situation in which two or more parties come to a common understanding or consent on a matter.

Executed

indicates that an operation or task has been successfully carried out or implemented to its full extent.