AAFM Exam GLO_CWM_LVL_1 Topic 5 Question 50 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 50
Topic #: 5

Consider two stocks, A and B

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?

A22.24

B20.48

C19.57

D24.62

Show Suggested Answer

Suggested Answer: B

by Delmy at Sep 22, 2022, 10:28 AM

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