What proportion of the portfolio should be allocated to stock C?

0.078

0.093

0.051

0.151

0.004

What is the risk (standard deviation) of the optimal portfolio?

15.0%

9.1%

11.4%

18.0%

12.2%

What proportion of the portfolio should be allocated to stock B?

0.059

0.021

0.000

0.039

0.081

What is the expected return of the optimal stock portfolio?

17.9%

16.4%

19.5%

15.1%

17.2%

StockABCReturn(R)25%19%8%Risk(StandardDeviationtoS)21%16%PairofStocksAtoBAtoCJointRisk(Covariance)0.050.075