3. In which of the following situations would you get the largest reduction in risk by spreading your investment across two stocks? (a) When the two shares are perfectly correlated. (b) When there is no correlation. () W 5 (d) When there is perfect negative correlation. hen the correlation coefficient is-0 Show how to construct the portfolio with the lowest possible vari- ance, assng the correlatio that E(ra)-10%,E(n)-19%,a,-30%, -20%. on is the one you selected above, and