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Assume you wish to evaluate the risk and return behaviors associated with various combinations of twostocks, Alpha Software and BetaElectronics, under three possible degrees ofcorrelation:
Assume you wish to evaluate the risk and return behaviors associated with various combinations of twostocks, Alpha Software and BetaElectronics, under three possible degrees ofcorrelation: perfectpositive, uncorrelated, and perfect negative. The average return and standard deviation for each stock appearshere:
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