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Consider the following information: Expected Standard Correlation with Correlation with Correlation with Deviation Stock Return D M W D 14% 6% 1.0 -1.0 0.0 M

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Consider the following information: Expected Standard Correlation with Correlation with Correlation with Deviation Stock Return D M W D 14% 6% 1.0 -1.0 0.0 M 44% 24% -1.0 1.0 0.7 W 23% 14% 0.0 0.7 1.0 Identify the following two stocks combination that offers the biggest risk reduction. O W and M O So such combination exists in the given options OD and W O M and D

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