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1. You are given the performance of stock and bond funds under various scenarios, as shown in the table below: a. Calculate the expected returns

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1. You are given the performance of stock and bond funds under various scenarios, as shown in the table below: a. Calculate the expected returns of the stock and bond funds. (4 marks) b. Calculate the standard deviations of the stock and bond funds. (4 marks) c. Calculate the correlation coefficient of the stock and bond funds. (4 marks) d. Suppose an investor forms a portfolio with stock and bond funds. Find the investment opportunity set in differing proportions. ( 8 marks) e. Calculate the weight in stock fund, expected return and standard deviation of the minimum-variance portfolio. (6 marks) 1. You are given the performance of stock and bond funds under various scenarios, as shown in the table below: a. Calculate the expected returns of the stock and bond funds. (4 marks) b. Calculate the standard deviations of the stock and bond funds. (4 marks) c. Calculate the correlation coefficient of the stock and bond funds. (4 marks) d. Suppose an investor forms a portfolio with stock and bond funds. Find the investment opportunity set in differing proportions. ( 8 marks) e. Calculate the weight in stock fund, expected return and standard deviation of the minimum-variance portfolio. (6 marks)

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