3. Stock A has a volatility of 20%, B has a volatility of 30%, and their correlation coefficient is 50%. They have the same expect returns. Suppose we can buy x share of A, and 1-x share of B. Then what the x should be for us to invest to make our portfolio has the minimum volatility?
The vols add in quadrature, with the caveat that the interference term has the correlation factor in there. So: sig(port)^2 = x^2*sig(A)^2+(1-x)^2*sig(B)^2+2*x*(1-x)*sig(A)*sig(B)*rho(AB) Take the partial with respect to x and set that equal to zero. Solve for x and get: x = 6/7
I would call in a meeting to find out exactly what is going wrong. If it is only a small team, I would make it a point to talk to them one by one and get their feedback. There is nothing like talking to someone face to face to see and hear what one has to say.
I explained the context for my client's initial inclination and how I persuaded them to adopt a different alternative through case studies, data and postulating how their selection would impact their users in the future (creative visualization).
First: Greet, welcome to (the bank's name),How may I help you? Second: Do some friendly chit chat along you do the transaction. Third: After finishing up the transaction, should look at their profile and see what kind of products/services they might need, and ask them if they have time to do that today with the personal banker, if not try to jot down their contact number and schedule an appointment with the personal banker. If not, then Finally: Tell them to have a great day and thank you for banking with us.
Attempt to understand each person's concerns to arrive at a conjectural solution, but ensure that every party is aware of other concerns in order to find a broader solution that mitigates internal issues while solving the problem assigned.