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Consider the following probability distribution for stocks A and B: StateProbabilityReturnonStockAReturnonstockB 1 0.10 10% 8% 2 0.20 13% 7% 3 0.20 12% 6% 4 0.30

Consider the following probability distribution for stocks A and B:

StateProbabilityReturnonStockAReturnonstockB 1 0.10 10% 8% 2 0.20 13% 7% 3 0.20 12% 6% 4 0.30 14% 9% 5 0.20 15% 8%

The expected rate of return and standard deviation of the global minimum variance portfolio, G, are ________ and _______ respectively.

***please note, i know the answer is 8.97%, 1.05%. what I am looking for is a clear, detailed explanation of how to get these answers so I can solve future problems like this. thank you!

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