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Arbor Systems and Gencore stocks both have a volatility of 35%. Compute the volatility of...

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Arbor Systems and Gencore stocks both have a volatility of 35%. Compute the volatility of a portfolio with 50% invested in each stock if the correlation between the stocks is (a) +1.00, (b) 0.50, (c) 0.00, (d) -0.50, and (e) -1.00. In which of the cases is the volatility lower than that of the original stocks? If the correlation is +1.00, the volatility of the portfolio is %. (Round to one decimal place.) If the correlation is 0.50, the volatility of the portfolio is If the correlation is 0.00, the volatility of the portfolio is %. (Round to one decimal place) % (Round to one decimal place.) If the correlation is -0.50, the volatility of the portfolio is %. (Round to one decimal place.) If the correlation is - 1.00, the volatility of the portfolio is %. (Round to one decimal place.) In which of the cases is the volatility lower than that of the original stocks? (Select the best choice below) O A. In cases (b), (c), (d) and (e) OB. In none of the cases O C . In all of the cases OD. In cases (d) and (e)

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