Stock A has an expected return of 10% and standar deviation of 20%. Stock B has an expected return of 15% and standard d
Posted: Wed Mar 30, 2022 3:49 pm
Stock A has an expected return of 10% and standar deviation of
20%. Stock B has an expected return of 15% and standard deviation
of 25%. The minimum variance portfolio (MVP) consisting of Stocks A
and B has an expected return of 12% and a standard deviation of 5%.
The risk-free rate equals 3%. The correlation between Stocks A and
B equals________
A) +1
B) –1
C) Less than +1 and greater than –1
D) Cannot determine without more data
20%. Stock B has an expected return of 15% and standard deviation
of 25%. The minimum variance portfolio (MVP) consisting of Stocks A
and B has an expected return of 12% and a standard deviation of 5%.
The risk-free rate equals 3%. The correlation between Stocks A and
B equals________
A) +1
B) –1
C) Less than +1 and greater than –1
D) Cannot determine without more data