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why answer c? please show works. 1) An investor can design a risky portfolio based on two stocks, A and B. The standard deviation of
why answer c? please show works.
1) An investor can design a risky portfolio based on two stocks, A and B. The standard deviation of return on stock A is 20%, while the standard deviation on stock B is 15%. The correlation coefficient between the returns on A and B is 0%. The rate of return for stocks A and B is 20% and 10% respectively. The standard deviation of return on the minimum-variance portfolio is A) 0% B) 6% C) 12% D) 17%Step by Step Solution
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