Question: Consider two risky stocks. Stock A has an expected return of 15 percent and a standard deviation of 14. Stock B has an expected return

Consider two risky stocks. Stock A has an expected return of 15 percent and a standard deviation of 14. Stock B has an expected return of 12 percent and a standard deviation of 14 percent. The correlation coefficient between the two stocks is 0.0. What is the expected return of a portfolio where 50 percent of the capital is invested in stock A and 50 percent is invested in stock B?

		11.4
		13.5
		11.7
		17.2
		10.5

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