An investment group offers their clients advice on creating a diversied investment portfolio. A client asks them to develop a portfolio that includes investment in a Domestic Growth Fund (a mutual fund composed of US stocks with a history of strong performance) and a corporate bond fund. The Domestic Growth Fund has an expected return of 7.80% with a standard deviation of 18.55%. The corporate bond fund has an expected percent return of 5.25% with a standard deviation of 4.60%. The covariance of an investment in the Domestic Growth Fund with an investment in a corporate bond fund is -12.6. (Round your answers for standard deviation to two decimal places.) (3) Which of the funds would be considered the more risky? Why? Ff The Domestic Growth Fund would be considered the more risky because it has a larger expected percent return. .5 Neither fund is risky since both are equivalent. 5 The corporate bond fund would be considered the more risky because it has a smaller expected percent return. '5 The corporate bond fund would be considered the more risky because it has a smaller standard deviation. b The Domestic Growth Fund would be considered the more risky because it has a larger standard deviation. (b) If the investment group recommends that the client invest 75% in the Domestic Growth Fund and 25% in the corporate bond fund, what is the expected percent return and standard deviation (C) for such a portfolio? expected percent return (Do not round) standard deviation (Round to 2 decimal places) what would be the expected return and standard deviation, in dollars, for a client investing $40,000 in such a portfolio? expected return $ (Round to the nearest dollar) standa rd deviation $ (Round to the nearest dollar) If the investment group recommends that the client invest 25% in the Domestic Growth Fund and 75% in the corporate bond fund, what is the expected return and standard deviation for such a portfolio? expected percent return (Do not round) standard deviation (Round to 2 decimal places) What would be the expected return and standard deviation, in dollars, for a client investing $40,000 in such a portfolio? expected return $ (Round to the nearest dollar) (d) Which of the portfolios in parts (b) and (c) would you recommend for an aggressive investor? Which would you recommend for a conservative investor? Why? An aggressive investor should use the portfolio in ---Select--- B because it has a ---Selecr--- a return. A conservative investor should elect the portfolio in ---Selecr-- B because it has a --Select--- a standard deviation (and because of this, is less risky)