What is the expected return of the optimal portfolio

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Stock A has a standard deviation equal to 20% and an expected return of 11%. Stock B has a standard deviation equal to 25% and an expected return of 14%. The covariance of the returns on Stock A and Stock B is 0.0100.

What is the expected return of the optimal portfolio of the two stocks that has a standard deviation equal to 23%?

Reference no: EM13882154

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