Question: Statistics for three stocks, A, B, and C, are shown in the following tables. Only on the basis of the information provided in the tables,

Statistics for three A, B, and C, are shown in the following tables.

Only on the basis of the information provided in the tables, and given a choice between a portfolio made up of equal amounts of stocks A and B or a portfolio made up of equal amounts of stocks B and C, which portfolio would you recommend? Justify yourchoice.

Standard Deviations of Returns Stock Standard deviation ( 40 20 40 Correlations of Returns Stock 1.00 0.90 0.50 1.00 0.10 1.00

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