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. The expected retum and standard deviations calculated for each of the assets are shown in the following table: a. If the retums of assets V and W are perfectly positively correlated (correlation coefficient =+1 ), describe the range 0 (1) expected retum and (2) standard deviation associated with all possible portfolio combinations. b. If the retums of assets V and W are uncorrelated (correlation coefficient =0 ), describe the approximate range of 1 ) expected return and (2) standard deviation associated with all possible portfolio combinations. c. If the retums of assets V and W are perfectly negatively correlated (correlation coefficient =1 ), describe the range of (1) expected return and (2) standard deviation associated with all possible portfolio combinations. a. If the retums of assets V and W are perfectly positively correlated (correlation coefficient =+1), all possible portfolio combinations will have: (Select the best answer below.) A. a range of expected return between 11% and 14% and risk between 24% and less than 18% but greater than 0 B. a range of expected retum between 11% and 14% and risk between 24% and 0%. C. a range of expected retum between 18% and 24% and risk between 11% and 14%. D. a range of expected retum between 11% and 14% and risk between 18% and 24%. \begin{tabular}{ccc|} Asset & Expected return, & Standard deviation), \\ \hline V & 11% & 18% \\ W & 14% & 24% \\ \hline \end{tabular}