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

Given the following information:

Expected return for stock A = 18%

Expected return for stock B = 25%

Standartd 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: (1.pt.)

67

Investment Analysis and Portfolio Management

100% invest in stock A;

100% invest in stock B;

50% in stock A and 50% in stock B;

20% invest in stock A and 80% in stock B

60% invest in stock A and 40% in stock B

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