Multiple Choice
An investor can design a risky portfolio based on two stocks, A and B. The standard deviation of return on stock A is 20%, while the standard deviation on stock B is 15%. The correlation coefficient between the returns on A and B is 0%. The rate of return for stocks A and B is 20% and 10% respectively. The standard deviation of return on the minimum-variance portfolio is ________.
A) 0%
B) 6%
C) 12%
D) 17%
Correct Answer:
Verified
Correct Answer:
Verified
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