Question: An investor is trying to create a MINVAR (minimum variance) portfolio based on two stocks, X and Y. The annual return on stock X is

An investor is trying to create a MINVAR (minimum variance) portfolio based on two stocks, X and Y. The annual return on stock X is 8.00%, and on stock Y is 3.00%. The standard deviation of annual return on stock X is 13.00%, and on stock Y is 10.00%. The correlation coefficient between the returns on X and Y is -0.65 . How much is the annual standard deviation of the MINVAR portfolio? Enter your answer in the following format: 0.1234 Hint: Answer is between 0.0434 and 0.0524

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