Question: 1. You are attempting to construct a minimum variance portfolio (MVP) with two well-diversified funds, S and B. The following table contains relevant information:

1. 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 S B Expected Return 20% 12% Expected Standard Deviation of Returns 30% 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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