Question: 1.9 2. Statistics for three stocks, A, B, and C. are shown in the following tables. Standard Deviations of Retums Stock: A B C Standard

1.9 2. Statistics for three stocks, A, B, and C. are

1.9 2. Statistics for three stocks, A, B, and C. are shown in the following tables. Standard Deviations of Retums Stock: A B C Standard deviation (): 40 20 40 Correlations of Returns Stock A B 1.00 0.90 0.50 B. 1.00 0.10 1.00 Using only 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 your choice

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