Question: You are interested in two stocks: Alcon and Beldon. Both stocks have an expected return of 8 percent. The standard deviation of Alcon is 3

You are interested in two Alcon and Beldon. Both have an of 8 percent. The standard deviation of Alcon is 3 percent, and the standard deviation of Beldon is 5 percent. You want the weights to be greater than or equal to zero. You want to minimize the standard deviation of the What should the composition be if
a. The correlation between the two is −0.8?
b. The correlation between the two is 0.8?

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