Assume you wish to evaluate the risk and return behaviors associated with various combinations of…

Assume you wish to evaluate the risk and return behaviors associated with various combinations of two? stocks, Software and Beta? Electronics, under three possible degrees of? correlation: perfect? positive, uncorrelated, and perfect negative. The average return and standard deviation for each stock appears? here:

a. If the returns of assets and Beta are perfectly positively correlated? (correlation coefficient ?= +1), over what range would the average return on portfolios of these stocks? vary? In other? words, what is the highest and lowest average return that different combinations of these stocks could? achieve? What is the minimum and maximum standard deviation that portfolios and Beta could? achieve?

b. If the returns of assets and Beta are uncorrelated?(correlation coefficient =0 ?), over what range would the average return on portfolios of these stocks? vary? What is the standard deviation of a portfolio that invests? 75% in and? 25% in? Beta? How does this compare to the standard deviations of and Beta?alone?

c. If the returns of assets and Beta are perfectly negatively correlated? (correlation coefficient ?), over what range would the average return on portfolios of these stocks? vary? Calculate the standard deviation of a portfolio that invests? 62.5% in and? 37.5% in Beta. a. If the returns of assets and Beta are perfectly positively correlated? (correlation coefficient ?), the range is between 62.5?% and 37.5?% ?(Round to one decimal? place.)