Carolyn Behr-Jerome wants to invest up to $5000 in stocks. The share price for the Costco Whole Corporation (COST) is $108, and it has a standard deviation value of 15.9. The share price for CVS Caremark Corporation (CVS) is $59, and the standard deviation value is 19.5 . Based on the average of 10-year returns, Costco would produce in a year a profit of $15 per share and CVS would produce a profit of $10 a share. Carolyn would like to obtain at least $800 in profit. 

How many shares of each stock should she purchase to minimize the risk as measured by the standard deviation?

What is the minimum value of the risk?

(Solve the  problems graphically)

Answer rating: 100% (QA)

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