Next, consider a two-asset portfolio consisting of stock A with WA - 80% and an expected return va = 15% and a standard deviation of A - 114, and stock B with Y = 7% and az = 8%. Assuming that the correlation between stocks A and B IS PAR - -0.15, the expected return to the portfolio is and the portfolio's standard deviation is Suppose that the correlation between stocks A and B is - 1, instead of put - -0.25. Which of the following statements correctly reflects the new data? The risk associated with the portfolio is lower The risk associated with the portfolio is higher. The expected return to the portfolio is lower. The expected return to the portfolio is higher. 9. The Arbitrage Pricing Theory Which of the following statements about the Arbitrage Pricing Theory (APT) are correct? Check all that apply. The APT assumes that all investors hold the market portfolio The APT allows the required return be a function of two, three, four, or more factors The APT is a single-factor model. The APT requires fewer assumptions than the Capital Asset Pricing Model (CAPM)