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The answers are C,C,A, but can you please explain HOW? Thanks! An analyst has made the following return projections for each of three possible outcomes

The answers are C,C,A, but can you please explain HOW? Thanks!image text in transcribed

An analyst has made the following return projections for each of three possible outcomes with an equal likelihood of occurrence: Asset Outcome 1(%Outcome 2%) Outcome 3(%) Expected return (%) 1 12 6 0 6 2 12 0 6 6 3 0 6 12 6 Which pair of assets is perfectly negatively correlated? A Asset 1 and Asset 2 B Asset 1 and Asset 3 C Asset 2 and Asset 3 If the analyst constructs two-asset portfolios that are equally weighted, which pair of assets has the lowest standard deviation? A Asset 1 and Asset 2 B Asset 1 and Asset 3 C Asset 2 and Asset 3 If the analyst constructs two-asset portfolios that are equally weighted, which pair of assets pro- vides the least amount of risk reduction? A Asset 1 and Asset 2 B Asset 1 and Asset 3 C Asset 2 and Asset 3

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