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Security X has expected return of 15% and standard deviation of 18%. Security Y has expected return of 9% and standard deviation of 10%. The
Security X has expected return of 15% and standard deviation of 18%. Security Y has expected return of 9% and standard deviation of 10%. The two securities have a correlation coefficient of -1.0 (perfectly negatively correlated). The risk-free portfolio that can be formed with the two securities will earn a rate of return of ______.
Select one:
a.
11.14%
b.
12.28%
c.
12.00%
d.
10.57%
e.
None of the options are correct
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