3. You currently hold a portfolio of three stocks, Delta, Gamma, and Omega. Delta has a volatility of 33%, Gamma has a volatility of 20%, and Omega has a volatility of 46%. Suppose you invest 20% of your money in Delta, and 40% each in Gamma and Omega.

a. What is the highest possible volatility of your portfolio?

b. If your portfolio has the volatility in (a), what can you conclude about the correlation between Delta and Omega?

You currently hold a portfolio of three stocks, Delta, Gamma, and Omega. Delta has a volatility of 33%, Gamma has a volatility of 20%, and Omega has a volatility of 46%. Suppose you invest 20% of your money in Delta, and 40% each in Gamma and Omega. a. What is the highest possible volatility of your portfolio? b. If your portfolio has the volatility in (a), what can you conclude about the correlation between Delta and Omega? a. What is the highest possible volatility of your portfolio? The highest possible volatility of your portfolio is %. (Round to two decimal place.) b. If your portfolio has the volatility in (a), what can you conclude about the correlation between Delta and Omega? (Select the best choice below.) A. Correlation =1 B. Correlation =1 C. Correlation =0 D. Correlation =0.5