No correlation

Investments on stocks and gold

Stock 1 Stock 2
30% 20%
Returns expected
Stock 1 Stock 2
5.50% 3.30%
mean 5.50% 3.20%
std 8.50% 4.70%

Total 5.7100%
returns
Mean 5.7100%
std 0.0000%

no corelation more Positive corelation is

RisKy Medium Risky
No correlation Positive corelation

estments on stocks and gold

commodity Stock 1 Stock 2 commodity

50% 30% 20% 50%
Returns expected Returns expected
commodity Stock 1 Stock 2 commodity
6.80% 5.50% 3.30% 6.80%
6.80% mean 5.50% 3.20% 6.80% mean
10.30% std 8.50% 4.70% 10.30% std

5.7100% 5.71% 5.71%

5.7100% 5.71% 5.71%

0.0000% 0.00% 0.00%

@RISK Correlations Stock 1 in $J Stock 2 in $K commodity in $L$10 @RISK Correla

Stock 1 in $J$10 1 Stock 1 in $O
Stock 2 in $K$10 0.95 1 Stock 2 in $P
commodity in $L$10 0.85 0.76 1 commodity in

Positive Neative Corelation Risk is

lesser and on safer side
 Negative correlation

Stock 1 Stock 2 commodity

30% 20% 50%
Returns expected
Stock 1 Stock 2 commodity
5.50% 3.30% 6.80%
5.50% 3.20% 6.80%
8.50% 4.70% 10.30%

5.71%

5.71%
0.00%

Stock 1 in $O Stock 2 in $P commodity in $Q$10

1
0.95 1
-0.85 -0.76 1