The daily volatility of Kuala Lumpur Stock (KLSE) index is 2.5 % and daily volatility of an option is 0.8%. Assuming you have choice to invest either one or both of them. However, if you invest both, there is correlation between KLSE and option of 0.6. e) Based on the: volatility of KLSE index for 5 days volatility of an option for 10 days daily volatility if I invest both KLSE and option volatility if I invest both KLSE and option for 3 days Is the investment in both reduce volatility? Justify your