Consider the characteristics of the following three stocks Standard Deviation Thumb Devices Air Comfort Sport Garb Expected Return 14% 11 11 22% 19 18 The correlation between Thumb Devices and Air Comfort is -0.15. The correlation between Thumb Devices and Sport Garb is -0.20. The correlation between Air Comfort and Sport Garb is 0.81. Select only two stocks for your portfolio based on low correlation and low risk.

Consider the characteristics of the following three stocks Standard Deviation Thumb Devices Air Comfort Sport Garb Expected Return 14% 11 11 22% 19 18 The correlation between Thumb Devices and Air Comfort is -0.15. The correlation between Thumb Devices and Sport Garb is -0.20. The correlation between Air Comfort and Sport Garb is 0.81. Select only two stocks for your portfolio based on low correlation and low risk.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter3: Risk And Return: Part Ii

Section: Chapter Questions

Problem 3P: Two-Asset Portfolio Stock A has an expected return of 12% and a standard deviation of 40%. Stock B...

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Consider the characteristics of the following three stocks: Expected Return Standard Deviation Thumb Devices 17% 25% Air Comfort Sport Garb 15 20 15 22 The correlation between Thumb Devices and Air Comfort is -0.19. The correlation between Thumb Devices and Sport Garb is -0.15. The correlation between Air Comfort and Sport Garb is 0.71. Select only two stocks for your portfolio based on low correlation and low risk. O Air Comfort and Thumb Devices O Air Comfort and Sport Garb O Sport Garb and Thumb Devices
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