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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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