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Question 3: You realize that having all your Dogs in one basket is a bit risky, and your roommate owns a latenight munchie/Breakfast Restaurant named

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Question 3: You realize that having all your Dogs in one basket is a bit risky, and your roommate owns a latenight munchie/Breakfast Restaurant named Eggsactly Rite The ER on Green) in which she offers you a chance to invest. The particulars are provided below. (note - this is covered in week 2 Portfolio Primer section) Projections D&D E( o(r) 5% 4% ER on Green 10% 22% Part b: Correlation in returns 0 Would you be better off owning D&D alone, or the portfolio of 90% D&D and 10% ER on Green and does it depend on your risk aversion? Why/why not? (answer in text box below)

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