The correlation coefficients between pairs of stocks is as follows:n
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Corr (A, B) = .85; Corr (A, C) = .60; Corr (A, D) =.45n
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Each stock has an expected return of 8 percent and a standard deviation of 20 percent. If you’re entire portfolio now comprises stock A and you can add only one more, which of the following would you choose, and why?n
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a. Bn
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b. Cn
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c. Dn
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d. Need more data

Answer rating: 100% (QA)

SOLUTION I WANT TO ADD ONE MORE MORE STOCK TREASURY BILL A... View the full answer