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You own Stock Z and you're consider adding another stock into your portfolio. You gather the following information about 4 candidates: Stock E[ret] Std Dev
You own Stock Z and you're consider adding another stock into your portfolio. You gather the following information about 4 candidates: Stock E[ret] Std Dev Correlation w/ Z A. 796 1296 0.70 B. 996 1596 0.50 C 696 2196 0.20 D. 1396 1996 0.60 If you're goal is to elimate firm risk, which Stock is the best choice for your portfolio? OA
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