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Volatility of the minimum-variance portfolio

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The following table shows risk and return measures for Coca-Cola and Intel.

Stock

Expected Return

Volatility

Coca-Cola

13.6%

15.4%

Intel

15%

23%

The correlation coefficient between the returns of Coca-Cola and Intel is 0.27. What is the volatility of the minimum-variance portfolio consisting of Coca-Cola and Intel? Assume there are no short-sale restrictions.

Reference no: EM133114505

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