AAFM Chartered Wealth Manager (CWM) Global Examination GLO_CWM_LVL_1 Question # 187 Topic 19 Discussion

AAFM Chartered Wealth Manager (CWM) Global Examination GLO_CWM_LVL_1 Question # 187 Topic 19 Discussion

GLO_CWM_LVL_1 Exam Topic 19 Question 187 Discussion:
Question #: 187
Topic #: 19

Consider two stocks, A and B

GLO_CWM_LVL_1 Question 187

The returns on the stocks are perfectly negatively correlated.

What is the expected return of a portfolio comprising of stocks A and B when the portfolio is constructed to drive the standard deviation of portfolio return to zero?


A.

22.24


B.

20.48


C.

19.57


D.

24.62


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