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Arbor Systems and Gencore stocks both have a volatility of 43%. Compute the volatility of a portfolio with 50% invested in each stock if the

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Arbor Systems and Gencore stocks both have a volatility of 43%. Compute the volatility of a portfolio with 50% invested in each stock if the correlation between the stocks is (a) +1.00, (b) 0.50, (c) 0.00, (d) -0.50, and () - 1.00. In which of the cases is the volatility lower than that of the original stocks? If the correlation is +1.00, the volatility of the portfolio is %. (Round to one decimal place.)

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