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Business, 05.07.2021 19:50 nettaboo9262

Given the following information: A smart investor is operating in a global market that includes two securities, A and B. from two major markets
A has an expected return of 159 and a standard deviation of 10%.
B has an expected return of 20% and a standard deviation of 15%.
A and B are perfectly negatively correlated.
Compute the relevant weights to construct an international portfolio with zero riskand obtain the return on such a portfolio
The relevant weights for A and B to construct a portfolio of zero risk are:
A. 1/5: 4/5
B. 3/5: 2/5
C. 2/5: 3/5
D. 24/25 1/25

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