Please answer questions (1) ~ (5) in the textbox below.Consi…
Please answer questions (1) ~ (5) in the textbox below.Consider two stocks, Nike, with an expected return of 20 percent and a standard deviation of 35 percent, and Adidas, an international company, with an expected return of 8 percent and a standard deviation of 23 percent. The correlation between the two stocks is −0.21. What are the expected return and standard deviation of the minimum variance portfolio?(1) Calculate the weight of Nike of the minimum variance portfolio. (4 pts)A. 0.27, B. 0.33, C. 0.41, D. 0.50(2) Calculate the Adidas of the minimum variance portfolio. (4 pts)A. 0.50, B. 0.59, C. 0.67, D. 0.73(3) Calculate the expected return of the minimum variance portfolio. (4 pts)A. 9.6%, B. 10.4%, C. 12.0%, D. 14.0%(4) Calculate the variance of the minimum variance portfolio. (4 pts)A. 0.0225, B. 0.0296, C. 0.0364, D. 0.1720(5) Calculate the standard deviation of the minimum variance portfolio. (4 pts)A. 17.2%, B. 23.0%, C. 29.6%, D. 34.9%
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