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Stock A Stock B Mean 8.00% 11.00% Variance 1.71% 2.67% Standard deviation 13.08% 16.34% Covariance 0.20% Correlation 0.0936 Proportion of stocok A in portfolio Portfolio

Stock A Stock B
Mean 8.00% 11.00%
Variance 1.71% 2.67%
Standard deviation 13.08% 16.34%
Covariance 0.20%
Correlation 0.0936
Proportion of stocok A in portfolio Portfolio Variance Portfolio standard deviation Portfolio mean
0% 2.67% 16.34% 11.00%
10% 2.22% 14.89% 10.70%
20% 1.84% 13.57% 10.40%
30% 1.55% 12.43% 10.10%
40% 1.33% 11.54% 9.80%
50% 1.20% 10.93% 9.50%
60% 1.14% 10.67% 9.20%
70% 1.16% 10.78% 8.90%
80% 1.27% 11.25% 8.60%
90% 1.45% 12.03% 8.30%
100% 1.71% 13.08% 8.00%

Draw a plot for the relationship between risk and return.

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