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USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

Question 83

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USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Stocks A and B have a correlation coefficient of -0.8. The stocks' expected returns and standard deviations are in the table below. A portfolio consisting of 40% of stock A and 60% of stock B is constructed.
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Stocks A and B have a correlation coefficient of -0.8. The stocks' expected returns and standard deviations are in the table below. A portfolio consisting of 40% of stock A and 60% of stock B is constructed. -Refer to Exhibit 6.14. What percentage of stock A should be invested to obtain the minimum risk portfolio that contains stock A and B? A) 35% B) 42% C) 58% D) 65% E) 72%
-Refer to Exhibit 6.14. What percentage of stock A should be invested to obtain the minimum risk portfolio that contains stock A and B?


A) 35%
B) 42%
C) 58%
D) 65%
E) 72%

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