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consider the following two, completely separate, economies. the expected return and volatility of all stocks in both economies is the same.

consider the following two, completely separate, economies. the expected return and volatility of all stocks in both economies is the same. in the first economy, all stocks move together- in good times all prices rise together and in bad times they all fall together. in the second economy, stock returns are indepedent one stock increasing in price has no effect on the prices of other stocks. assuming you are risk-averse and you could choose one of the two economies in which to invest, which one would you choose? Explain. can someone please guide me in the right direction i just need to make up two stocks. i have been waiting since 8pm and im about to get a failing grade. i know this is last minute but im desperate please help me and explain how you came up with example sample questions.

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