Gina DeLong has lived in her home for 26 years. During that time the city has tripled in population, traffic is a mess, and there just are not enough roads. Tuesday morning the sheriff came to her house and told her that she had to move because a new road was going to be built right through her house. When she complains that she has lived there for so long and doesn't want to move, she is told, "Too bad, you have 30 days to get out."

Stocks a, b, and c are similar in some respects: each has an expected return of 10% and a standard deviation of 25%. stocks a and b have returns that are independent of one another; i.e., their correlation coefficient, r, equals zero. stocks a and c have returns that are negatively correlated with one another; i.e., r is less than 0. portfolio ab is a portfolio with half of its money invested in stock a and half in stock b. portfolio ac is a portfolio with half of its money invested in stock a and half invested in stock c. which of the following statements is correct? a. portfolio ab has a standard deviation that is greater than 25%.b. portfolio ac has an expected return that is less than 10%.c. portfolio ac has a standard deviation that is less than 25%.d. portfolio ab has a standard deviation that is equal to 25%.e. portfolio ac has an expected return that is greater than 25%.