After surveying a customer, you conclude that he can tolerate a standard deviation of at most 12%. You then can allocate your customers wealth into a corporate bond fund, a common stock fund, and a U.S. t-bill (risk-free). The following are means and standard deviations:

	Expected Return	Standard Deviation
Bond fund (b)	15%	17%
Common stock (s)	21%	35%
U.S. t-bill (rf)	9.5%	05

Between the bond fund and the stock fund, the correlation is = 0.7.

After finding the weights of the bond fund (w B), the common stock (w S), and the riskfree asset (w Rf).

w B = 0.208

w S = 0.792

w Rf = 0

Find the return of the portfolio from the weights and verify that the standard deviation of the risky portfolio is exactly 15%(how did you get that) ? (Show work for each step please)

So in another words, look for

Expected return final = ?

standard deviation final = ?