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A portfolio is comprised of two stocks, A and B. Stock A has a standard deviation of return of 25% while stock B has a
A portfolio is comprised of two stocks, A and B. Stock A has a standard deviation of return of 25% while stock B has a standard deviation of return of 5%. Stock A comprises 20% of the portfolio while stock B comprises 80% of the portfolio. If the variance of return on the portfolio is .0080, the correlation coefficient between the returns on A and B is __________.
A. -.975
B. -.025
C. .025
D. .975
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