A, B&C [4]

You are given the following information about three stocks Stock Expected Standard Return Deviation A O0(5 6 B 0.1 0.1 C 0.2 0.375 The correlation between B and C is 0.2 1. Suppose you desire to invest in any one of the stocks listed above (singly). Can any be recommended?

2. Now suppose you diversify into two securities. Given all choices, can any portfolio be eliminated? Assume equal weights.