Stocks L, M, and N each have the same expected returns and standard deviation. The correlation coefficients between the each pair of these stocks are as follows: L and N correlation = -0 80; L and M correlation = + 0 20; M and N correlation = -0.40. Given these correlations, a portfolio constructed of which pairs of stocks will have the lowest standard deviation? L and M. L and N. M and N. The returns for U.S and foreign equity markets are often negatively correlated. The negative correlation indicates that for U.S. investors: Foreign stocks are poor investments. Foreign stocks are the equivalent of U.S stocks. There are diversification benefits from holding foreign stocks. There are no diversification benefits from holding foreign stocks. Stock A offers an expected return equal to 18% with a standard deviation equal to 22%. Gold offers an expected return equal to 10% with a standard deviation equal to 30%. The correlation between stock A and gold is equal to +1.00. Which of the following is correct? Rational risk-averse investors Will not hold gold. Might hold gold depending on their preferences. Will only hold gold in some combination with stocks