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need a b and c Correlation, risk, and return Matt Peters wishes to evaluate the risk and return behaviors associated with various combinations of assets
need a b and c
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 return and risk values calculated for each of the assets are shown in the following table, a. If the returns of assets V and W are perfectly positively correlated (correlation coefficient =+1 ), describe the range of (1) expected return and (2) risk associated with all possible portfolio combinations. b. If the returns of assets V and W are uncorrelated (correlation coefficient =0 ), describe the approximate range of (1) expected return and (2) risk associated with all possible portfolio combinations. c. If the returns of assets V and W are perfectly negatively correlated (correlation coefficient =1 ). describe the range of (1) expected return and (2) risk associated with all possible portfolio combinations. a. If the returns 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 7% and 9% and risk between 9% and less than 5% but greate B. a range of expected return between 5% and 9% and risk between 7% and 9%. Data table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Step by Step Solution
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