You would like to create an optimal portfolio using an index model. You found two stocks which will be used to create an active portfolio. Using the expected return, beta, and residual standard deviations of these two stocks and the information about the market risk and return with the risk-free rate given in the table below, create your optimal portfolio What is the standard deviation of your optimal portfolio? Asset Stock A Stock B T-bills Index (market) Market std deviation Expected return (%) Beta 0.23 2.1 0.165 1.2 0.067 0 0.143 0.25 Resid std 0.27 0.13 0 You would like to create an optimal portfolio using an index model. You found two stocks which will be used to create an active portfolio. Using the expected return, beta, and residual standard deviations of these two stocks and the information about the market risk and return with the risk-free rate given in the table below, create your optimal portfolio What is the standard deviation of your optimal portfolio? Asset Stock A Stock B T-bills Index (market) Market std deviation Expected return (%) Beta 0.23 2.1 0.165 1.2 0.067 0 0.143 0.25 Resid std 0.27 0.13 0