Question: You are attempting to construct a minimum variance portfolio (MVP) with two well- diversified funds, S and B. The following table contains relevant information: Fund

You are attempting to construct a minimum variance portfolio (MVP) with two well- diversified funds, S and B. The following table contains relevant information:

Fund	Expected Return	Expected Standard Deviation of Returns
S	20%	30%
B	12%	15%
Correlation of S and B = 0.10

Determine the expected return and standard deviation of the MVP consisting of funds S and B.

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