1. Most adverse events (like late payments or collections) can only stay on your credit history(and therefore affect your credit score) for 7 years. Do you think it is reasonable for there to be a limit on the length of your credit history? Why or why not? If you could change the number of years what would you recommend?
2. Consider an investment opportunity set formed with two securities that are perfectly negatively correlated. The global minimum variance portfolio has a standard deviation that is always _________.
The ans is equal to 0. But why? Please give me a detailed explanation.