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Stock A has a volatility of 62% and a correlation of 18% with your current portfolio. Stock B has a volatility of 68% and a
Stock A has a volatility of 62% and a correlation of 18% with your current portfolio. Stock B has a volatility of 68% and a correlation of 41% with your current portfolio. You currently hold both stocks. Which of the following choices below will increase the volatility of yourportfolio: (i) selling a small amount of stock B and investing the proceeds in stockA, or(ii) selling a small amount of stock A and investing the proceeds in stockB?
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