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Problem 9-21 Diversifying (LG4, LG5) Consider the characteristics of the following three stocks: Thumb Devices Expected Return Standard Deviation Air Comfort Sport Garb 13% 10

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Problem 9-21 Diversifying (LG4, LG5) Consider the characteristics of the following three stocks: Thumb Devices Expected Return Standard Deviation Air Comfort Sport Garb 13% 10 10 25% 19 17 The correlation between Thumb Devices and Air Comfort is -0.12. The correlation between Thumb Devices and Sport Garb is -0.21. The correlation between Air Comfort and Sport Garb is 0.77 Select only two stocks for your portfolio based on low correlation and low risk. O Sport Garb and Thumb Devices O Air Comfort and Sport Garb Thumb Devices and Air Comfort ReferenceseBook & Resources

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