Question: Following is information for the required returns and standard deviations of returns for A, B, and C. The correlation coefficients for each pair also are

Following is information for the required returns

Following is information for the required returns and standard deviations of returns for A, B, and C. The correlation coefficients for each pair also are shown below in a matrix. Which is the portfolio you will recommend AB, AC, or BC, and why? 7% 10% 20% 33% 54% 90% Required Rate of return Standard Deviation Correlation Coefficient A,B Correlation Coefficient A.C Correlation Coefficient B.C 0.16 0.19 0.17

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