Question: Problem 11-16 Minimum Variance Portfolio (LO4, CFA4) Consider two stocks, Stock D, with an expected return of 17 percent and a standard deviation of 32

Problem 11-16 Minimum Variance Portfolio (LO4, CFA4) Consider two stocks, Stock

Problem 11-16 Minimum Variance Portfolio (LO4, CFA4) Consider two stocks, Stock D, with an expected return of 17 percent and a standard deviation of 32 percent, and Stock I, an international company, with an expected return of 10 percent and a standard deviation of 20 percent. The correlation between the two stocks is -0.18. What is the weight of each stock in the minimum variance portfolio? (Do not round intermediate calculations. Round your answers to 4 decimal places.) Weight of Stock D Weight of Stock

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