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

Consider two risky stocks. Stock A has an expected return of

Consider two risky stocks. Stock A has an expected return of 14 percent and a standard deviation of 15. Stock B has an expected return of 14 percent and a standard deviation of 16 percent. The correlation coefficient between the two stocks is 0.4. What is the expected return of a portfolio where 60 percent of the capital is invested in stock A and 40 percent is invested in stock B? 11.5 12.3 14.0 11.8 O 17.9

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