Question: Stock A: Expected Return: 15%, Standard Deviation: 20%. Stock B: Expected Return: 10%, Standard Deviation: 15%. Correlation AB is 0.3. Consider a portfolio with 60%

Stock A: Expected Return: 15%, Standard Deviation: 20%.

Stock B: Expected Return: 10%, Standard Deviation: 15%.

Correlation AB is 0.3.

Consider a portfolio with 60% invested in Stock A and 40% invested in Stock B. If the correlation between stock A and stock B declined to 0, the overall standard deviation for the portfolio would:

Group of answer choices

Fall but remain above 0

Equal 0

Rise

Stay the same

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