An Investor Can Design a Risky Portfolio Based on Two

question 39

Multiple Choice

An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 21% and a standard deviation of return of 39%. Stock B has an expected return of 14% and a standard deviation of return of 20%. The correlation coefficient between the returns of A and B is 0.4. The risk-free rate of return is 5%.
-The expected return on the optimal risky portfolio is _________.

• A) 14%
• B) 16%
• C) 18%
• D) 19%

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The process of negatively affecting or hindering the acquisition of knowledge, skills, or understanding through various factors or actions.

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