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Assume the following two stocks P and Q Stock Expected return % St. Deviation % Correlation P 12 16 0.2 Q 18 25 O a)

Assume the following two stocks P and Q

Stock	Expected return %	St. Deviation %	Correlation
P	12	16	0.2
Q	18	25

a) construct the efficient frontier of the two stocks.

b) what weight combinations give the minimum variance portfolio of the two stocks? Calculate the expected return and standard deviation of the minimum variance portfolio.

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