A portfolio analyst has been asked to allocate investment funds among three different stocks. The relevant data for the stocks is shown in the following table. If the goal is to minimize risk while maintaining a return of at least 18%, find the proper allocation of the funds to each stock.

Stock	Return (R)	Risk (Standard Deviation to S)	Pair of Stocks	Joint Risk (Covariance)
A	25%	21%	A to B	0.05
B	19%	16%	A to C	0.075
C	8%	14%	B to C	0.05

What proportion of the portfolio should be allocated to stock C?

Multiple Choice

0.078

0.093

0.051

0.151

0.004

What is the risk (standard deviation) of the optimal portfolio?

Multiple Choice

15.0%

9.1%

11.4%

18.0%

12.2%