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Rudy is a risk-averse investor. He wants to reduce risk as much as possible in the stock market. If you are his financial advisor, you
Rudy is a risk-averse investor. He wants to reduce risk as much as possible in the stock market. If you are his financial advisor, you would suggest him form a portfolio with two stocks that:
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a) | their returns are the highest in the last year; |
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b) | their returns are the lowest in the last year; |
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c) | their correlation is 0.1; |
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d) | their correlation is 0.5; |
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e) | their correlation is 0.9; |
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