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1. Correlation: a. You have two assets A and B, both have the same standard deviation equal to 30%. If the correlation between them is

1. Correlation: a. You have two assets A and B, both have the same standard deviation equal to 30%. If the correlation between them is 0.8, what is the covariance between A and B? Which asset is more volatile? b. If assets A and C have a correlation equal to -0.4, would you prefer building a portfolio out of A and B or rather A and C? Why

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