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Business, 19.03.2021 04:10 alexa3941

An investor can design a risky portfolio based on one stock fund (S) and one bond fund (B). The Stock fund has an expected return of 21% and a standard deviation of return of 39%. The bond fund has an expected return of 14% and a standard deviation of return of 20%. The correlation coefficient between the returns of two funds is 0.4. The risk-free rate of return is 5%. What is the proportion of the optimal risky portfolio that should be invested in the stock fund

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An investor can design a risky portfolio based on one stock fund (S) and one bond fund (B). The Stoc...
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