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You are attempting to construct a minimum variance portfolio (MVP) with two well- diversified funds, S and B. The following table contains relevant information: Fund
You are attempting to construct a minimum variance portfolio (MVP) with two well- diversified funds, S and B. The following table contains relevant information:
Fund | Expected Return | Expected Standard Deviation of Returns |
S | 20% | 30% |
B | 12% | 15% |
Correlation of S and B = 0.10 |
Determine the expected return and standard deviation of the MVP consisting of funds S and B.
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