Correlation, risk, and return Matt Peters wishes to evaluate the risk and return behaviors associated with various combinations of assets V and W under three assumed degrees of correlation: perfectly positive, uncorrelated, and perfectly negative.

three alternatives c. Use your findings in parts a and b to calculate the coefficient of variation for each of the three alternatives. d. On the basis of your findings, which of the three investment alternatives do recommend? Why? you Correlation, risk, and return Matt Peters wishes to evaluate the risk and return be haviors associated with various combinations of assets V and W under three as- sumed degrees of correlation: perfectly positive, uncorrelated, and perfectly negative. The expected returns and standard deviations calculated for each of the assets are shown in the following table. LG 4 P8-15 Risk (standard deviation), o, Expected Asset return, r V 8% 5% 13 10 mud to es R beCHAPTER 8 Risk and Return 333 a. If the returns of assets V and W are perfectly positively correlated (correlation coefficient = +1), describe the range of (1) expected return and (2) risk associ- ated with all possible portfolio combinations. b. If the returns of assets V and W are uncorrelated (correlation coefficient = describe the approximate range of (1) expected return and (2) risk associated with all possible portfolio combinations c. If the returns of assets V and W are perfectly negatively correlated (correlation coefficient = ated with all possible portfolio combinations. 0), -1), describe the range of (1) expected return and (2) risk associ- Personal Finance Problem U.S.citizen living in Brownsville