Consider the following two investment opportunities: a stock fund and a bond fund with E(r_S)=0.20, σ_S=0.21, E(r_B)=0.12, σ_B=0.12. The correlation coefficient between the two funds is 0.10. The expected rate of return of the minimum variance portfolio is _______%. (Please round your answer to the nearest first decimal place and note that a return of 0.251 should be expressed as 25.1%.)

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To find the expected rate of return of the minimum variance portfolio we need to use the formula for ... View the full answer