Question: D Question 4 Given the following expectations for return, risk and correlation: E(r) a psb Portfolio S 0.13 0.14 -0.25 Portfolio B 0.08 0.25

D Question 4 Given the following expectations for return, risk and correlation: E(r) a psb Portfolio S 0.13 0.14 -0.25 Portfolio B 0.08 0.25 Risk-free 0.035 0.5 pts An optimal portfolio of S and B has been calculated to contain 0.55 stocks, i.e. portfolio S (out of a possible 100% or 1.0). What would be the standard deviation of the optimal portfolio from S and B? 0.1082 0.1313 01247 0.1194 0.1134 Dravinue Navt

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