How many of x should be purchased to minimize the variance


Smith buys 14 securities of Company Y. Securities for Company X are the same price, however, the variance of the price of X is 40 and the variance of the price of Y is 40.

According to market research, the price of X goes up when the price of Y goes down, with a covariance of -8. How many of X should be purchased to minimize the variance of his portfolio?

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Financial Management: How many of x should be purchased to minimize the variance
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