Consider stock A with expected return rA and return standard deviation sA, and stock B with expected return rB and return standard deviation sB. Assume the two stocks are perfectly positively correlated and that sA>sB or sA

A. xA=(sB/( sB- sA)); xB=(sA/( sA- sB))

B. xA=50%; xB=50%

C. xA=(sA/( sB- sA)); xB=(sB/( sB- sA))

D. None of the above as both stocks have risky returns.

E. I choose not to answer.