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

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 . In a MINVAR portfolio, How much is the weight of stock Y ? Enter your answer in the following format: + or -0.1234 Hint: Answer is between 0.5093 and 0.6309

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