If two securities have a correlation coefficient of +0.75, their returns will generally move in the same direction A True B) False Question 8 A security has the following distribution of possible one-year rates of return: Possible return: -3 percent O percent +3 percent +6 percent Probability: 0.2 0.3 0.3 0.2 Calculate the expected return and standard deviation for this security. A) R=4.5 percent, Sd=9.07 percent BR = 1.5 percent, Sd=3.07 percent R = 2.5 percent, Sd=4.7 percent (D) R 1.8 percent, Sd=2.09 percent