Consolidated financial statements


1. An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 45% and a standard deviation of return of 9%. Stock B has an expected return of 15% and a standard deviation of return of 2%.The correlation coefficient between the returns of A and B is 0.0025. The risk-free rate of return is 2%. The proportion of the optimal risky portfolio that should be invested in stock A is _________.

2. Consolidated financial statements are:

a financial statement combining all months of the year

a summary of the four financial statements

the financial statements of the parent corporation combined with those of its subsidiaries.

the four financial statements combined into a single document

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Financial Management: Consolidated financial statements
Reference No:- TGS02788504

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