An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 18% and a standard deviation of return of 20%. Stock B has an expected return of 14% and a standard deviation of return of 5%. The correlation coefficient between the returns of A and B is 0.50. The risk-free rate of return is 10%.
-The standard deviation of return on the optimal risky portfolio is _________.
A) 0%
B) 5%
C) 7%
D) 20%

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The Answer of An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 18% and a standard deviation of return of 20%. Stock B has an expected return of 14% and a standard deviation of return of 5%. The correlation coefficient between the returns of A and B is 0.50. The risk-free rate of return is 10%.
-The standard deviation of return on the optimal risky portfolio is _________.
A) 0%
B) 5%
C) 7%
D) 20%

An Investor Can Design a Risky Portfolio Based on Two