Question 43 (5 points) Two stocks from the Toronto Stock Exchange (TSX) are combined in a portfolio. From ten years of performance data, you have determined the price volatility of each stock to be as follows: Stock A Variance 24.35 Standard Deviation 4.93 Stock B Variance 7.97 Standard Deviation 2.82 Stock A is a cyclical stock whose volatility follows the volatility of the TSX. Stock B on the other hand is a counter cyclical stock. As a result, the two stocks are complementary and in a portfolio generate a Correlation coefficient of -0.35. Based on the information provided, if your goal is to minimize the volatility of the portfolio would you expect the portfolio to contain more of Stock A and less of Stock B or more of Stock B and less of Stock A? Explain the basis for your choice