Question: There are two stocks A and B, which both earn a return in excess of the risk-free rate. You decide to invest 50% of your

There are two stocks A and B, which both earn a return in excess of the risk-free rate. You decide to invest 50% of your wealth in asset A and 50% in asset B. What is the amount of correlation between the return on asset A and B that you most prefer out of the options given below?

1.-0.5

2.0

3.0.5

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