Question
1.You have just deposited $10,000 into your TDAmeritrade account with the intent of creating a two-asset portfolio. You have already decided to buy Stock A,
1.You have just deposited $10,000 into your TDAmeritrade account with the intent of creating a two-asset portfolio. You have already decided to buy Stock A, which has an expected rate of return of 15% and a standard deviation of 21%. The second asset that you will add to the portfolio is an ETF that tracks treasury bonds. This ETF has an expected rate of return equal to 5% and a standard deviation of 2%. If your goal is to allocate your funds across the two assets to earn an expected portfolio return of 10%, then how much money should you allocate to each security?
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