-Refer to Exhibit 6B.1. Show the minimum portfolio variance for a portfolio of two risky assets when r_1.2 = -1. A) E( $\sigma$1) $\div$ [E( $\sigma$1) + E( $\sigma$2)] B) E( $\sigma$1) $\div$ [E( $\sigma$1) - E( $\sigma$2)] C) E( $\sigma$2) $\div$ [E( $\sigma$1) + E( $\sigma$2)] D) E( $\sigma$2) $\div$ [E( $\sigma$1) - E( $\sigma$2)] E) None of these are correct.

Question

Quizplus · Accepted Answer

The Answer is C

-Refer to Exhibit 6B σ\sigmaσ 1) ÷\div÷ [E σ\sigmaσ 1) + E σ\sigmaσ 2)] B) E

-Refer to Exhibit 6B $\sigma$ 1) $\div$ [E $\sigma$ 1) + E $\sigma$ 2)]
B) E