Stock X Has an Expected Return of 10 Percent and a Standard

Multiple Choice

Stock X has an expected return of 10 percent and a standard deviation of 38 percent. Stock Y has an expected return of 13 percent and a standard deviation of 48 percent. The weight of Stock X in the minimum variance portfolio of the two assets is __________ than the weight of Stock Y.

A) greater
B) less
C) the same
D) less only if the correlation is negative
E) greater only if the correlation is positive