FM 2020S1-Reflection on Market Values - Accounting & Finance Assignment Help

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Task 

Question 1.
You are considering an investment in two stocks, A and B. Suppose that you estimate ?A = 0.80 and ?B = 1.40. Further, you also estimate the following values, which you believe are a reliable guide for the future. All values are expressed in annual terms. The correlation between stocks A and B is 0.40.