QUESTION 18 The table below provides the returns and variances of two stocks A and...

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QUESTION 18 The table below provides the returns and variances of two stocks A and B. RET RET 0.03 0.05 0.05 0.03 0.03 0.05 0.01 0.07 0.07 0.15 Peter is a risk-averse Investor and intends to construct a risk-free portfolio consisting of these two stocks. What is Peter's expected return on the risk-free portfolio? a. 0.002 b. 0.004 0.008 d. 0.018 e. None of the above

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