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Given the following information:
a. What are the expected returns and standard deviations of the following portfolios:
1. 100 percent of funds invested in Stock A
2. 100 percent of funds invested in Stock B
3. 50 percent of funds invested in each stock?
b. What would be the impact if the correlation coefficient were ?0.6 instead of 0.2?
Polygenic
Relating to or resulting from the influence of multiple genes, especially with regard to traits that exhibit a continuous distribution in the population.
Skin Color
The pigmentation of the skin, primarily determined by genetic inheritance influencing the amount and type of melanin produced.
Height
The measurement of someone or something from base to top or from the ground to a designated top point, expressing vertical dimension.
Blood Type AB
A human blood group characterized by the presence of both A and B antigens on the surface of red cells, making it the universal recipient type in blood transfusion.
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