Question: QUESTION 3 (25 MARKS) Stock Percentage Return (%) Year 1 2 3 4 5 6 A 10 5 6 8 12 15 B 8 4

QUESTION 3 (25 MARKS) Stock Percentage Return (%) Year 1 2 3 4 5 6 A 10 5 6 8 12 15 B 8 4 4.8 6.4 9.6 12 C 5 10 12 10 6 6 a) c) i) Identify which pair of the combinations A, B and C shows a positive correlation. (2 marks) ii) Explain which pair shows a negative correlation. (2 marks) iii) Justify how can the risk of the above combination of stocks be minimized. (3 marks

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