Use the table for the question(s) below. Consider the following expected returns, volatilities, and correlations: Stock
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Use the table for the question(s) below. Consider the following expected returns, volatilities, and correlations: Stock
question(s) below. Consider the following expected returns, volatilities, and correlations: Stock Duke Energy Microsoft Wal-Mart Expected Standard Return Deviation 14% 6% 44% 24% 23% 14% Correlation with Correlation with Correlation with Duke Energy OA. Wal-Mart and Microsoft O B. Duke Energy and Wal-Mart OC. Microsoft and Duke Energy OD. No combination will reduce risk. 1.0 - 1.0 0.0 Microsoft -1.0 Wal-Mart 0.0 1.0 0.7 0.7 1.0 Which of the following combinations of two stocks would give you the biggest reduction in risk?
Use the table for the