Question: Consider two risky stocks. Stock A has an expected return of 14 percent and a standard deviation of 14. Stock B has an expected return

Consider two risky stocks. Stock A has an expected return of 14 percent and a standard deviation of 14. Stock B has an expected return of 10 percent and a standard deviation of 14 percent. The correlation coefficient between the two stocks is 0.8. What is the expected return of a portfolio where 40 percent of the capital is invested in stock A and 60 percent is invested in stock B?

		8.3
		10.2
		13.5
		11.6
		14.6

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