Define the term perfectly positively correlated

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Question: Assume two investments; A and B. A has an expected return of 10percentage and a standard deviation of 6percentage. B has an expected return 5percentage and a standard deviation of 3percentage. Assume 25percentage share in investment A and a 75percentage share in investment B. Calculate the expected return of the portfolio. What do "Perfectly Positively Correlated" "Perfectly Negatively Correlated" "Perfectly Uncorrelated" mean (verbally and mathematically)? [This can be answered in about 2-3 sentences tops]. calculate the portfolio risk in the cases of perfectly positively correlated risks, negatively correlated risks, and uncorrelated Explain your results.

Reference no: EM131441988

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