Suppose that you have identified two stocks with risk and return properties as described in...
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Suppose that you have identified two stocks with risk and return properties as described in the table below:
|
| Expected Return E(Ri) | Variance i 2 | Standard Deviation i | Correlation 1,2 |
| Stock 1 | 10% | 0.01 | 10% | -1 |
| Stock 2 | 20% | 0.09 | 30% |
Among all the portfolios that you can create with these two stocks, there is one that provides minimum variance. What is the mean return of this minimum-variance portfolio?
Round your answer to the nearest 0.1% and enter your answer as a percentage. For example, if your answer is "12.3%", enter "12.3".
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