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QUESTION 4 The table below provides the returns and variances of two stocks A and B. RETA 0.03 0.05 0.03 0.01 RET, 0.05 0.03 0.05

QUESTION 4 The table below provides the returns and variances of two stocks A and B. RETA 0.03 0.05 0.03 0.01 RET, 0.05 0.03 0.05 0.07 -0.07 0.15 Peter is a risk-averse investor and intends to construct a risk-free portfolio consisting of these two stocks. What is Peter's expected return on the risk-free portfolio

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