Question: The expected return on MSFT next year is 12% with a standard deviation of 20%. The expected returm on AAPL next vear is 24% with

The expected return on MSFT next year is 12% with a standard deviation of 20%. The expected returm on AAPL next vear is 24% with a standard deviation of 30%. The corelation between the two stocks is .6. if james makes equal investments in MSFT and AAPL, what is the expected retum on his portfolio.

a. 21.45%

b. 4.60%

c. 25.00%

d. 15.00%

The expected return on MSFT next year is 12% with a

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