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:

  • 100% invest in stock A
  • 50%instockAand50%instockB
  • 40%instockAand60%instockB

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