Stocks A, B, and C have the same expected return and standard deviation The following table shows the correlations between the returns on these stocks Given these correlations, the portfolio constructed from these stocks having the lowest risk is a portfolio a Equally invested in stocks A and B b E...

The Stock A B and C have the same expected return and ...

Stocks A, B, and C have the same expected return and standard deviation. The following table shows

Question:

A, B, and C have the same and standard deviation. The following table shows the correlations between the returns on these

Given these correlations, the portfolio constructed from these stocks having the lowest risk is a portfolio:
a. Equally invested in stocks A and B.
b. Equally invested in stocks A and C.
c. Equally invested in stocks B and C.
d. Totally invested in stockC.

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...