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Please help with A-C if possible Correlation, risk, and return Matt Petors wishes to ovahuate tho risk and return bohaviors associaled with various combinations of
Please help with A-C if possible
Correlation, risk, and return Matt Petors wishes to ovahuate tho risk and return bohaviors associaled with various combinations of assets V and W undor three assumed degrees of correlation: perfectly positive, uncorrelated, and porfoctly negative. The expected refum 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 positvely correlated (correlation coatficient =+1), doscribe the range of (1) expected returt and (2) risk associated with all possible portfolio combinations: b. If the returns of assets V and W are incorrelated (cotrelation coofficient = 0), describe the approximate range of (1) expected retum and (2) risk associated with all possible portfolio combinations. c. If the returns of assets V and W are perfoctly negatively correlated (correlation coofficient = - 1), describe the range of (1) expecied return and (2) risk associated with all possible portfolio combinations. a. If the returns of assets V and W are perfectly positively correlated (correlation coelficient = +1), all posstblo portiolio combinations will have: (Select the best answor below.) A. a range of expected retum between 7% and 12% and risk between 11% and 0%. B. a range of expecled retum between 7% and 12% and risk between 5% and 11%. C. a range of expected retum between 7% and 12% and risk between 11% and less than 5% but greater than 0%. D. a range of expected retum between 5% and 11% and tisk between 7% and 12%. Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Step by Step Solution
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