Question 11 1 pts Consider and equal-weight portfolio of 2 firms F and G with correlation = 0.8. You plot the risk premium and volatility of this portfolio in a graph that has the risk premium on the y-axis and the volatility on the x- axis. What happens to the location of the portfolio in the graph when you change the correlation from 0.8 to 0.4? The portfolio risk premium goes up, and so the portfolio moves to the left The portfolio risk premium goes down, and so the portfolio moves to the left The portfolio volatility goes down and the risk premium goes up, and so the portfolio moves to the left The portfolio volatility goes down and the risk premium goes up and so the portfolio moves up and to the left axis. What happens to the location of the portfolio in the graph when you change the correlation from 0.8 to 0.4? O The portfolio risk premium goes up, and so the portfolio moves to the left The portfolio risk premium goes down, and so the portfolio moves to the left The portfolio volatility goes down and the risk premium goes up, and so the portfolio moves to the left The portfolio volatility goes down and the risk premium goes up, and so the portfolio moves up and to the left The portfolio volatility goes down, and the risk premium does not change, and so the portfolio moves to the left The portfolio volatility goes up and the risk premium does not change, and so the portfolio moves to the right