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Refer to the table below: 3 Doors, Inc. Down Co. Expected return, E(R) 22 % 10...

Refer to the table below:

3 Doors, Inc. Down Co.
Expected return, E(R) 22 % 10 %
Standard deviation, σ 37 21
Correlation 0.34

Using the information provided on the two stocks in the table above, find the expected return and standard deviation on the minimum variance portfolio. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

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Answer #1

E(rs) 22% E(rb) = 37% std (B) 10.0% std (s) 21% correlation 0.34 Covariance matrix (cov r,s) correlation x std (s) x std (b)

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