Only on the basis of the information provided in the tables, and given a choice between a portfolio made up of equal amounts of stocks A and B or a portfolio made up of equal amounts of stocks B and C, which portfolio would you recommend? Justify your choice.

Your paper must be in a Word document of two to four pages, not counting the title page. (12 New times Roman double spaced)

Statistics for three stocks, A, B and C, are shown in the following tables: Standard Deviation of Returns Stock A B C Standard Deviation (%) 40 20 40 Correlations of Returns Stock A B C A B C 1.00 0.90 1.00 0.50 0.10 1.00 Only on the basis of the information provided in the tables, and given a choice between a portfolio made up of equal amounts of stocks A and B or a portfolio made up of equal amounts of stocks B and C, which portfolio would you recommend? Justify your choice. Your paper must be in a Word document of two to four pages, not counting the title page