Assume normal notations used in the class for two stocks A and $,{}_A($Standard deviation$),{}_B,$ and ${}_{AB}($correlation coefficient$)]$

Stock A has an expected return of $12\%$ and a standard deviation of $20\%.$ Stock B has an expected return of $15\%$ and a standard deviation of $35\%.$ The correlation coefficient between stock A and B is $-1.$ You are required to create a portfolio of with $40\%$ invested in stock A and $60\%$ invested in stock $B.$

The expected return of the pgrtfolio is

$13\mathrm{.}5\%$

$13\mathrm{.}2\%$

$13\mathrm{.}8\%$

None of the answer

$16\mathrm{.}0$