the expected return on Toy inc. is 13% and it's standard deviation is 21.2%. The expected return on chemical industries is 8% and it's standard deviation is 26.8%.

C. Why is there a slight difference between the results, when the correlation coefficient was 0.34 and when it was 0.84? (Click to select) (Click to select) The higher the correlation is between the two variables the higher the potential is for diversification. The higher the correlation is between the two variables, the less the potential is for diversification The expected return on Big Time Toys is 13% and its standard deviation is 21 2%. The expected return on Chemical Industries is 8% and its standard deviation is 26.8%. a Suppose the correlation coefficient for the two stocks' returns is 0.34. What are the expected return and standard deviation of a portfolio with 66% invested in Big Time Toys and the rest in Chemical Industries? (Round your answers to 2 decimal places.) Portfolio's expected return 11.30% Portfolio's standard deviation 19.12% b. If the correlation coefficient is 0.84, recalculate the portfolio expected return and standard deviation, assuming the portfolio weights are unchanged. (Round your answers to 2 decimal places.) Portfolio's expected return 11.30% Portfolio's standard deviation 22 20% c. Why is there a slight difference between the results, when the correlation coefficient was 0.34 and when it was 0.84? (Click to select) (Click to select) The higher the correlation is between the two variables, the less the potential is for diversification The higher the correlation is between the two variables, the higher the potential is for diversification