Consider the Following Probability Distribution for Stocks a and B

question 57

Multiple Choice

Consider the following probability distribution for stocks A and B: 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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Definitions:

Company Shareholders

Individuals or entities that own shares in a company, giving them partial ownership and a stake in its future profits.

Angel

A rich individual funding a start-up company, typically in exchange for convertible debt or an equity share.

Equity Crowdfunding

A method of raising capital through the sale of shares in a company to a large number of investors, typically through online platforms.

JOBS Act

The Jumpstart Our Business Startups Act is legislation in the United States intended to encourage the funding of small businesses by easing various securities regulations.