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sonra valo torce Correlation, risk, and return Matt Peters wishes to evaluate the risk and return behaviors associated with various combinations of assets V and

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sonra valo torce Correlation, risk, and return Matt Peters wishes to evaluate the risk and return behaviors associated with various combinations of assets V and W under three assumed degrees of correlation: perfectly positive, uncorrelated, and perfectly negative. The expected return and risk values calculated for each of the assets are shown in the following table, a. If the returns of assets V and W are perfectly positively correlated correlation coefficient = +1), describe the range of (1) expected return and (2) risk associated with all possible portfolio combinations b. If the returns of assets V and W are uncorrelated (correlation coefficient = 0), describe the approximate range of (1) expected return and (2) risk associated with all possible portfolio combinations. c. If the returns of assets V and W are perfectly negatively correlated (correlation coefficient = -1), describe the range of (1) expected return and (2) risk associated with all possible portfolio combinations. a. If the returns of assets V and W are perfectly positively correlated (correlation coefficient = +1), all possible portfolio combinations will have: (Select the best answer below.) A. a range of expected return between 9% and 11% and risk between 5% and 10%. B. a range of expected return between 9% and 11% and risk between 10% and less than 5% but greater than 0%. C. a range of expected return between 9% and 11% and risk between 10% and 0%. OD. a range of expected return between 5% and 10% and risk between 9% and 11%. Asset V W Expected return, 9% 11% Risk (standard deviation), o 5% 10%

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