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

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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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
Transcribed Image Text: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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