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Correlation, risk, and return Matt Peters wishes to evaluate the risk and return behaviors associated with various combinations of assets V and Wunder three assumed

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Correlation, risk, and return Matt Peters wishes to evaluate the risk and return behaviors associated with various combinations of assets V and Wunder three assumed degrees of correlation: perfectly positive, uncorrelated, and perfectly negative. The expected return and risk values calculated for each of the assets are shown in the following table, 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 associated with all possible portfolio combinations. b. If the returns of assets and W are uncorrelated (correlation coefficient = 0), describe the approximate range of (1) expected retum and (2) risk associated with all possible portfolio combinations c. If the returns of assets V and W are perfectly negatively correlated (correlation coefficient -- 1), describe the range of (1) expected return and (2) risk associated with all possible portfolio combinations a. If the returns of assets and Ware perfectly positively correlated (correlation coefficient = + 1), all possible portfolio combinations will have: (Select the best answer below.) O A. a range of expected return between 7% and 10% and risk between 10% and 0% OB. a range of expected return between 7% and 10% and risk between 10% and less than 5% but greater than 0% Oc a range of expected return between 7% and 10% and risk between 5% and 10%. OD a range of expected return between 5% and 10% and risk between 7% and 10% Click to select your answer and then click Check Answer Darts A AL . 5 of 25 (11 complete) wishes to evaluate the risk and return behaviors associated with various co sitive, uncorrelated, and perfectly negative. The expected return and risk ectly positively correlated (correlation coefficient = +1), describe the range of rolated correlation coefficient - Al decoribe the onoravimata range of 4 Data Table (Click on the icon located on the top-right corner of the data table below in order copy its contents into a spreadsheet.) Asset V W Expected return, 7% 10% Risk (standard deviation), 5% 10% Print Done an click Check Answer Clear All

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