Finance Assignment | Top Essay Writing
Asset 1 has a 6% expected return and a 5% standard deviation. Asset 2 has 12% expected return and 10% standard deviation.
A. If the correlation coefficient is less than one, then no portfolio obtained by combining assets 1 and 2 can have an expected return larger than 6%.
B. If the correlation coefficient is equal to one, then no portfolio obtained by combining assets 1 and 2 can have a standard deviation lower than 5%.
C. If the correlation coefficient is less than one, then no portfolio obtained by combining assets 1 and 2 can have an expected return smaller than 12%
D. If the correlation coefficient is less than one, then no portfolio obtained by combining assets 1 and 2 can have a standard deviation lower than 5%. Get Finance homework help today