Question: Given the following information: Expected return for stock A = 18% Expected return for stock B = 25% Standard deviation of stock A = 12%

Given the following information:
Expected return for stock A = 18%
Expected return for stock B = 25%
Standard deviation of stock A = 12%
Standard deviation of stock B = 20%
Correlation coefficient = 1.0.
Choose the investment below that represents the minimum risk portfolio: a) 100% invest in stock A
b) 100% invest in stock B
c) 50% in stock A and 50% in stock B;
d) 20% invest in stock A and 80% in stock B e) 60% invest in stock A and 40% in stock

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