Question: Answer Question Homework: M4: Chapter 11 Homework Save Score: 0 of 1 pt 3 of 9 (7 complete) HW Score: 47.78%, 4.3 of 9 pts
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Homework: M4: Chapter 11 Homework Save Score: 0 of 1 pt 3 of 9 (7 complete) HW Score: 47.78%, 4.3 of 9 pts P11-19 (similar to) Question Help Stock A has a volatility of 49% and a correlation of 24% with your current portfolio. Stock B has a volatility of 82% and a correlation of 43% with your current portfolio. You currently hold both stocks. Which of the following choices below will increase the volatility of your portfolio: (1) selling a small amount of stock B and investing the proceeds in stock A, or (il) selling a small amount of stock A and investing the proceeds in stock B? The marginal contribution to risk for stock A is %. (Round to one decimal place.)
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