Question $7$

Part $1$ of $6$

Points: $0$ of $1$

Arbor Systems and Gencore stocks both have a volatility of $39\%.$ Compute the volatility of a portfolio with $50\%$ invested in each stock if the correlation between the stocks is $($a$)+1\mathrm{.}00,($b$)0\mathrm{.}50,($c$)0\mathrm{.}00,($d$)-0\mathrm{.}50,$ and $($e$)-1\mathrm{.}00.$ In which of the cases is the volatility lower than that of the original stocks?. $($Round to two decimal place.$)$