You are allocating your wealth between two shares, Tinkle.com and Circumbendibus Wheels. Tinkle.com has volatility 36.10%, while Circumbendibus Wheels has volatility 57.30%. The correlation beteween the two shares' returns is 0.34. What percentage of your wealth should you allocate to Tinkle.com to minimise your portfolio's volatility? 81.13% 5.27% 36.64% 43.05%

You are allocating your wealth between two shares, Tinkle.com and Circumbendibus Wheels. Tinkle.com has volatility 36.10%, while Circumbendibus Wheels has volatility 57.30%. The correlation beteween the two shares' returns is 0.34. What percentage of your wealth should you allocate to Tinkle.com to minimise your portfolio's volatility? 81.13% 5.27% 36.64% 43.05%

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 15MC

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