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Stock A's annual returns have a standard deviation of 27%.  Stock B's annual returns have a standard...

Stock A's annual returns have a standard deviation of 27%.  Stock B's annual returns have a standard deviation of 76%. The two stocks have a correlation of 0. Use calculus to find out what percentage of your money you should invest in Stock A in order to minimize the standard deviation of a portfolio of A and B. Please show step by step! Use formula if needed.

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Answer #1

­SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

INVESTMENT IN STOCK A = 88.79%

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