In a two risk asset portfolio, when is the total risk of the portfolio equal to...
In a two risk asset portfolio, when is the total risk of the portfolio equal to the weighted average of the two assets in the portfolio?
Homework Answers
In above image the formula for portfolio risk has been given.
According to above formula if the value of the co-realtion among the securities in portfolio is equal zero that means there is n co relation between the securities into the portfolio.
So if Corr= 0 then weighted average average the two assets into the portfolio.
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