Question: 13. You create a portfolio using two stocks A and B with correlation coefficient equal to 0.6. You invest 40% in A that has expected

13. You create a portfolio using two stocks A and B with correlation coefficient equal to 0.6. You invest 40% in A that has expected return 10% and variance 0.01 You invest 60% in B that has expected return 20% and variance 0.02 What is the expected return of the portfolio? a. 13% b. 19% c. 15% d. 14% e. 16% f. 12% g. 17% h. 11%

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