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1.Arcadia Health has $10 million invested in long erm corporate bonds. This bond portfolio is expected annual return is 9% and the annual standard deviation
1.Arcadia Health has $10 million invested in long erm corporate bonds. This bond portfolio is expected annual return is 9% and the annual standard deviation is 10%. The corresponding S&P market index has an expected return of 14% and standard deviation of 16%. If Arcadia puts all its money in a combination of the index fund and treasury bills, can he improve his expected rate of return without chaging the risk of the portfolio? Note that the treasury bill yield is 6%
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