Hey,
This is the equation:
\(V_A (x_A - 2 \sqrt{2} x_B)^2 + (1+\rho) 2\sqrt{2} x_A x_B V_A \)
I'm not able to understand that if \(\rho \) = -1 then how can the whole portfolio be zero risk because we still have \(V_A (x_A - 2 \sqrt{2} x_B)^2 \) to deal with. I feel like I've missed something really important.
Last edited by a moderator: Feb 21, 2020
