An analyst has made the following return projections for each of three possible outcomes with an equal likelihood of occurrence: Asset Outcome 1(%) Outcome 2(%) Outcome 3(%) Expected return (%) 1 12 0 6 6 2 12 6 0 6 3 0 6 12 6 Which pair of assets is perfectly negatively correlated? Asset 1 and Asset 2 Asset 1 and Asset 3 Asset 2 and Asset 3 If the analyst constructs two-asset portfolios that are equally weighted, which pair of assets has the lowest standard deviation? Asset 1 and Asset 2 Asset 1 and Asset 3 Asset 2 and Asset 3

PowerPoint An analyst has made the following return projections for each of three possible outcomes with an equal likelihood of occurrence: Asset Outcome 1 Outcome 2 Outcome 3 Expected Return 1 2 3 12% 12% 0% 0% 6% 6% 696 0% 12% 6% 6% 6% Which pair of assets is perfectly negatively correlated? A. Asset 1 and Asset 2. B. Asset 1 and Asset 3. C. Asset 2 and Asset 3. BAC B cop