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Which will increase the volatility of portfolio

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Reference no: EM133001081

Problem 1: Stock A has a volatility of 62% and a correlation of 18% with your current portfolio. Stock B has a volatility of 68% and a correlation of 41% with your current portfolio. You currently hold both stocks. Which of the following choices below will increase the volatility of your? portfolio: (i) selling a small amount of stock B and investing the proceeds in stock? A, or? (ii) selling a small amount of stock A and investing the proceeds in stock? B?

Reference no: EM133001081

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