Question: Two assets have the following characteristics. Compute the expected return and standard deviation of an equal-weighted portfolio if the correlation coefficient is 0.1. Compute the

Two assets have the following characteristics. Compute the expected return and standard deviation of an equal-weighted portfolio if the correlation coefficient is 0.1. Compute the expected return and standard deviation of the equal-weighted portfolio if the correlation coefficient is 0.9. Which correlation coeffecient resulted in a better risk-return profile?

Stock	E(R)
1	0.12	20%
2	0.15	25%

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