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% Stock A and 40% Stock B. If the correlation between stock A and Stock B declined to 0, the expected return for the portfolio would:

Group of answer choices

Fall

Rise

Equal the risk-free rate

Stay the same

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