Question: Security X ' s expected return is 1 0 percent while the expected return of B is 1 4 percent. The standard deviation of X

Security X's expected return is 10 percent while the expected return of B is 14 percent. The standard deviation of X's returns is 5 percent, and it is 9 percent for B. An investor plans to invest equal amounts in X and B. Which of the following statements is true about this portfolio consisting of stock X and stock B.(There is no need for any calculation).
Question 22 options:
The risk of the portfolio is primarily dependent on the utility function of the investor.
The higher the correlation of returns between the two stocks, the higher the portfolio's risk.
The risk of the portfolio is something that should never concern an investor.
The lower the correlation of returns between the two stocks, the higher the portfolio's risk.

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