If the ratio of the return variances of stock a to stock b


If the ratio of the return variances of stock A to stock B is denoted by q, find the portfolio weights for the two stocks that generate a riskless portfolio if the returns of the two stocks are

(a) perfectly negatively correlated or

(b) perfectly positively correlated.

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Finance Basics: If the ratio of the return variances of stock a to stock b
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