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Suppose there are two possible risky assets. There is Stock A that has an expected return of 10.00% with a standard deviation of 15.00% and
Suppose there are two possible risky assets. There is Stock A that has an expected return of 10.00% with a standard deviation of 15.00% and Stock B that has an expected return of 16.00% with a standard deviation of 28.00%. Assuming the two risky assets have a -0.20 correlation, and that the risk-free rate is 3.00%, what would be the expected return on the minimum variance portfolio (using the previously calculated minimum variance portfolio weights)? Group of answer choices
11.58%
13.91%
14.42%
12.09%
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