Question: Consider the following two stocks: Stock Expected Return (E[r]) Standard Deviation Correlation AB A 0.21 0.16 0.20 B 0.25 0.21 1) If you only have

Consider the following two stocks: Stock Expected Return (E[r]) Standard Deviation

Consider the following two stocks: Stock Expected Return (E[r]) Standard Deviation Correlation AB A 0.21 0.16 0.20 B 0.25 0.21 1) If you only have stocks A and B to construct a portfolio P, find the weights of stock A and B in the portfolio P that gives the minimum variance portfolio. What are the expected return and standard deviation of this portfolio? Does the portfolio have better performance than the individual stocks? Can you offer some explanations

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