IGNORE THE BLUE DOT

Security A's expected return is 10%, while the expected return of is 14%. The standard deviation of A's returns is 5%, and it is 9% or amounts in A and B. Which of the following statements is true about this portfolio consisting of stock A and stock B? An investor plans to invest equal a. The lower the correlation of returns between the two stocks, the higher the portfolio's risk. b. The risk of the portfolio is primarily dependent on the utility function of the investor. C, The risk of the portfolio is equal to 7%. d. The higher the correlation of returns between the two stocks, the higher the portfolio's risk