Question: For a two-stock portfolio, the expected returns (ER) and standard deviations (SD) for the two stocks are: ER1 = 8% SD1 = 16% ER2 =

For a two-stock portfolio, the expected returns (ER) and standard deviations (SD) for the two stocks are:

ER1 = 8%		SD1 = 16%
ER2 = 12%		SD2 = 20%

The correlation between their returns is 0.2. Find the portfolio weights for the minimum variance portfolio. For this portfolio, the portfolio expected return is:

	A.	9.45%
	B.	9.65%
	C.	9.85%
	D.	10.05%

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