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Suppose you were making a portfolio from only two stocks, Apple and Banana. The standard deviation...

Suppose you were making a portfolio from only two stocks, Apple and Banana. The standard deviation of Apple is 20%, and the standard deviation of Banana is 15%. The correlation coefficient between Apple and Banana is 0%. The expected return is 20% for Apple is 20% and 10% for Banana. What is the expected return on the minimum-variance portfolio (MVP) created from those two stocks?

Multiple Choice

  • 19.41%

  • 13.6%

  • 15%

  • 10%

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