3. Stock K has an expected return of 8% and a standard deviation of 10%. Stock L has an expected return of 10% and a standard deviation of 12%. The correlation between the two assets is 0.6. Which portfolio is most likely to be a zero beta portfolio? a erk 0 a portfolio with wk-75% (b) a portfolio with wk-60% (c) a portfolio with wk-45% (d) a portfolio with wk-30% PNO: 6 erl=1 OL=112

Stock K has an expected return of 8% and a standard deviation of 10%. Stock L has an expected return of 10% and a standard deviation of 12%. The correlation between the two assets is 0.6 . Which portfolio is most likely to be a zero beta portfolio? (a) a portfolio with wK=75% (b) a portfolio with wK=60% (c) a portfolio with wK=45% ericion erL: (d) a portfolio with wK=30% l=1 Stock K has an expected return of 8% and a standard deviation of 10%. Stock L has an expected return of 10% and a standard deviation of 12%. The correlation between the two assets is 0.6 . Which portfolio is most likely to be a zero beta portfolio? (a) a portfolio with wK=75% (b) a portfolio with wK=60% (c) a portfolio with wK=45% ericion erL: (d) a portfolio with wK=30% l=1