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  3. stock a has a volatility of 54% and a correlation

Stock A has a volatility of 54% and a correlation of 19% with your current...

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Accounting

image Stock A has a volatility of 54% and a correlation of 19% with your current portfolio. Stock B has a volatility of 37% and a correlation of 32% 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 ? The marginal contribution to risk for stock A is \%. (Round to two decimal place.)

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