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An investor can design a risky portfolio based on two stocks, A and B. Stock...

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Accounting

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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 expected return on the optimal risky portfolio is Multiple Choice O 14.0% O 15,6% O 16.4% 18.0%

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