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Matt Peters wishes to evaluate the risk and return behaviors associated with various combinations of assets V and W under three assumes degrees of correlation,
Matt Peters wishes to evaluate the risk and return behaviors associated with various combinations of assets V and W under three assumes degrees of correlation, perfectly positive, uncorrelated, and perfectly negative. The expected return and risl values calculated for each are in the below table: Asset Expected return, r Risk (standard deviation) V 7% 5% W 10% 10% If the returns of assets V and W are perfectly positevly correlated (correlation coefficient = +1), all possible portfolio combinations will have
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