Stock S has an expected return of 8 percent and a standard deviation of 20 percent. Stock B has an expected return of 3 percent and a standard deviation of 12 percent. If the correlation of the two stocks is 0.15, what is the expected return of the minimum variance portfolio?
A) 15.40%
B) 17.71%
C) 4.15%
D) 10.37%
E) 6.91%
Correct Answer:
Verified
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