QUESTION 2 The current T-bill money market rate is 3%. The following table contains the...
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QUESTION 2 The current T-bill money market rate is 3%. The following table contains the probability distribution for the two stocks you are considering: Stock Expected Return Variance PFE 0.20 0.16 NSD 0.14 0.09 The correlation coefficient between PFE and NSD is 0.8. If you use these two stocks to create a minimum variance portfolio, what is the variance of the portfolio? O A. 0.315 OB. 0.299 OC. 0.0 O D. 0.102
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