q6

An investor can design a risky portfolio based on two stocks, A and B. The standard deviation of return on stock A is 10%, while the standard deviation on stock Bis 15%. The correlation coefficient between the returns on A and B is 0%. The rate of return for stocks A and B is 15% and 20% respectively. The expected return on the minimum variance portfolio is approximately 15.8% 16.55% 14.6% 12.5%