How does the change of weights affect the two-stock


1. Many developed countries (i.e. Italy, Japan) have government debt problems. Do they have any risk management of their national debt? What’s your opinion regarding this issue?

2. Discuss the relationship of portfolio risk, company-specific risk, and market risk.

3. How does the change of weights affect the two-stock portfolio risk?

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Financial Management: How does the change of weights affect the two-stock
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