Arbor Systems and Gencore stocks both have a volatility of 47%.

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

(e)1.00.

(f) In which of the cases is the volatility lower than that of the original stocks?