Question: Problem 11-16 Minimum Variance Portfolio (LO4, CFA4) Consider two stocks, Stock D, with an expected return of 14 percent and a standard deviation of 30

Problem 11-16 Minimum Variance Portfolio (LO4, CFA4)

Consider two stocks, Stock D, with an expected return of 14 percent and a standard deviation of 30 percent, and Stock I, an international company, with an expected return of 5 percent and a standard deviation of 10 percent. The correlation between the two stocks is 0.07. What is the weight of each stock in the minimum variance portfolio? (Do not round intermediate calculations. Round your answers to 4 decimal places.)

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