Question: True or False? -- Stock A has an expected return of 20% and a standard deviation of 20%. Stock B has an expected return of
True or False? -- Stock A has an expected return of 20% and a standard deviation of 20%. Stock B has an expected return of 10% and a standard deviation of 10%. If both the red line and the blue line describe the efficient frontier of stocks A and B for two different time frames, the correlation coefficient between the two stocks must be lower for the blue line than for the red line.
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