Question: Question 2 2 pts USE THIS INFORMATION FOR ALL THREE QUESTIONS: An investor can design a risky portfolio based on two stocks, 1 and 2.
Question 2 2 pts USE THIS INFORMATION FOR ALL THREE QUESTIONS: An investor can design a risky portfolio based on two stocks, 1 and 2. Stock 1 has an expected return of 15% and a standard deviation of return of 25%. Stock 2 has an expected return of 12% and a standard deviation of return of 20%. The correlation coefficient between the returns of 1 and 2 is 0.2. The risk-free rate of return is 1.5%. What is the Expected Return on the Optimal Portfolio? Enter as a percentage. Thus ten percent would be entered as "10.00" or just "10" but NOT as "10%
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