Please answer asapThe current T-bill money market rate is 3%. Thefollowing table contains the probability distributionfor the two stocks you are considering:Stock Expected Return VariancePFE0.20NSD 0.14A. 12.25%The correlation coefficient between PFE and NSDis 0.8. If you use these two stocks to create aminimum variance portfolio, what is the expectedreturn on the portfolio?B. 13.38%C. 11.84%0.16D. 10.15%0.09

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The current T-bill money market rate is 3%. The following table contains the probability distribution for the two stocks you are considering: Stock Expected Return Variance PFE NSD 0.20 0.14 0.16 0.09 The correlation coefficient between PFE and NSD is 0.8. If you use these two stocks to create a minimum variance portfolio, what is the expected return on the portfolio?

The current T-bill money market rate is 3%. The following table contains the probability distribution for the two stocks you are considering: Stock Expected Return Variance PFE NSD 0.20 0.14 0.16 0.09 The correlation coefficient between PFE and NSD is 0.8. If you use these two stocks to create a minimum variance portfolio, what is the expected return on the portfolio?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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