Multiple Choice
The market consists of two stocks. Stock F has an expected return of 9 percent and a standard deviation of 32 percent. Stock G has an expected return of 13 percent and a standard deviation of 50 percent. The correlation between the two stocks is -0.10. The efficient frontier is:
A) the line between Stock F and Stock G.
B) the line between the minimum variance portfolio and Stock F.
C) the line between the minimum variance portfolio and Stock G.
D) all to the right of Stock F on the risk/return graph.
E) all to the right of Stock G on the risk/return graph.
Correct Answer:
Verified
Correct Answer:
Verified
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