sume that the single-index model holds, the risk-free rate is 2% per year, the expected return on the market is 10% per year and that the annualized volatility (standard deviation) of market returns is 20%. assume that the beta of ibm is 1.0, the beta of gm is 2.0, and their respective annualized return volatilities are 25% and 80%. what is the correlation between ibm and gm returns? group of answer choices 0.4 0 0.8 -0.25
