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a mutual fund has two risky assets, stock (s) and bond (b), with weights ws =30% and wb =70%. The expected returns, standard deviations and
a mutual fund has two risky assets, stock (s) and bond (b), with weights ws =30% and wb =70%. The expected returns, standard deviations and correlations of the two assets are E(rs) =20%, E(rb) =10%, STDEV s= 40%, STDEVb 20%, and psb = 10%. How much will the expected return of this mutual fund
a= 10%
b =13%
c= 17%
d=20%
e= none of the above
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