An Investor Can Design a Risky Portfolio Based on Two

question 52

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 return on A and B is 0%. The standard deviation of return on the minimum variance portfolio is _________.

• A) 0%
• B) 6%
• C) 12%
• D) 17%

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Definitions:

Colorectal Cancer

A type of cancer that begins in the colon or rectum, parts of the digestive system.

Increased

The action or process of becoming larger in quantity, size, degree, or intensity.

Breast Cancer

A malignant tumor that develops from breast cells, considered one of the most common cancers affecting women.

Breast Cancer

A type of cancer that forms in the cells of the breasts, one of the most common cancers among women worldwide.