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e. Assume a third stock, Stock C, is available for inclusion in the portfolio. Stock C produced the following returns during the past five years:

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e. Assume a third stock, Stock C, is available for inclusion in the portfolio. Stock C produced the following returns during the past five years: Year Stock C's Return, o 32.00% -11.75 10.75 32.25 -6.75 Input these values and calculate the average return, standard deviation, and coefficient of variation for Stock C. f. Assume that the portfolio now consists of 33.33 percent Stock A, 33.33 percent Stock B, and 33.34 percent Stock C. How does this composition affect the portfolio return, standard deviation, and coefficient of variation versus when 50 percent was invested in A and in B? g. Make some other changes in the portfolio, making sure that the percentages sum to 100 percent. For example, enter 25 percent for Stock A, 25 percent for Stock B, and 50 percent for Stock C. Notice that fp remains constant and that Op changes. Why do these results occur? h. In part b, you should see that the standard deviation of the portfolio decreased only slightly because Stocks A and B were highly positively correlated with each other. The addition of Stock C causes the standard deviation of the portfolio to decline dramatically, even though OC = A=OB. What does this change indicate about the correlation between Stock C and Stocks A and B

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