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11- Consider the following investment example where the covariance between stocks and bonds is -156.81. Investment Exp. Return (%) Var of Return 100% Stocks 7.34

11-

Consider the following investment example where the covariance between stocks and bonds is -156.81.

Investment

Exp. Return (%)

Var of Return

100% Stocks

7.34

90.55

100% Bonds

2.82

38.42

What is the expected return for an investment portfolio of 10% stocks and 90% bonds?

Round to two digits (e.g. 5.47%)

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