4. Assume the expected return on stocks is 18% (represented by Z in the figure), and the expected return on bonds is 8% (represented by point Y on the graph).W, X, Y and Z are names of the portfolios. Minimum-Variance Frontier: Stocks and Bonds E(R) 209 z w 16% 1296 X Y 8% 4% 10% 0% 20% A The graph shows the minimum-variance frontier for stocks and bonds. Which portfolio on the graph most likely represents a 90% allocation in stocks and a 10% allocation in bonds ? (1 marks) B. According to the graph, which portfolio most likely represents the global minimum-variance portfolio? (1 marks) C. The efficient frontier consists of the portfolios between and including