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Stocks A , B , and C all have an expected return of 1 0 % and a standard deviation of 2 5 % .
Stocks A B and C all have an expected return of and a standard deviation of Stocks A and B have returns that are independent of one another, ie their correlation coefficient, equals zero. Stocks A and have returns that are negatively. correlated with one another, ie is less than Portfolio is a portfolio with half of its money invested in Stock A and half in Stock B Portfolio AC is a portfolio with half of its money invested in Stock A and half invested in Stock C Which of the following statements is CORRECT?
Portfolio AC has an expected return that is greater than
Portfolio AB has a standard deviation that is equal to
Portfolio AC has a standard deviation that is less than
Portfolio AC has an expected return that is less than
Portfolio has a standard deviation that is greater than
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