As investment group offers their clients advice on creating a diversified investment portfolio. A cleet asks them to develop a portfolio that includes investment in Domestic Growth Fund (a mutual ed 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 retum of 5.25% with a standard deviation of 4.40%. The covariance of an investment in the Domestic Growth Fund with an investment in a corporate bond fund is 12.7. (Round your answers for standard deviation to two decimal places.) (a) Which of the funds would be considered the more risky? Why? ONeither fund is risky since both are equivalent The Domestic Growth Fund would be considered more risky because it has a larger standard deviation The corporate bond fund would be considered more risky because it has a smaller expected percent retu The corporate bond fund would be considered more risky because it has a smaller standard deviation The Domestic Growth Fund would be considered more risky because it has a larger expected percent return (b) If the investment group recommends that the dient invest 75% in the Domestic Growth Fund and 25% in the corporate bond fund, what is the expected percent return and standard deviation for such a portfol expected percent return (Do not round) standard deviation (Round to 2 decimal places) What would be the expected return and standand deviation, in dollars, for a client investing $50,000 in such a portfolio) expected return standard deviation (Round to the nearest doller, end de not include the original $50,000 investment amount) (Round to the nearest doller) (E) If the investmgroup 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 portfo expected turn standerd deviation % (De not round) (Round to 2 decimal places) What would be the expected return and standard deviation, in dollars, for a client investing $50,000 in such a portfo expected retur $ standard deviation (Round to the nearest dollar, and de NOT include the original $50,000 investment amount) (Round to the nearest do) (a) 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 porthole in because has retum A conservative investor should let the portfolio in Standard deviation (and because of this, is less risky). because it has a Animent group offers their clents advice on creating a diversified investment portfolio. A clent asks them to develop a portfolio that includes investment in a Domestic Growth Fund (a mutual fund composed of us stadio 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 4.40%. The covariance of an investment in the Domestic Growth Fund with an investment in a corporate bond fund is-12.7. (Round your answers for standard deviation to two decimal places.) (a) Which of the funds would be considered the more risky? Why? ONeither fund is risky since both are equivalent. The Domestic Growth Fund would be considered more risky because it has a larger standard deviation O The corporate bond fund would be considered more risky because it has a smaller expected percent return. The corporate bond fund would be considered more risky because it has a smatier standard deviation O The Domestic Growth Fund would be considered more risky because it has a larger expected percent return. (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 for such a portfolio? Expected percent return standard deviation %(Do not round) %(Round to 2 decimal places) What would be the expected return and standard deviation, in dollars, for a client investing $50,000 in such a portfolio? expected return standard deviation $ $ (Round to the nearest dollar, and do NOT include the original $50,000 investment amount) (Round to the nearest dollar) (c) 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 standard deviation %(Do not round) % (Round to 2 decimal places); What would be the expected return and standard deviation, in dollars, for a client investing $50,000 in such a portfolio? expected return standard deviation (Round to the nearest dollar, and do NOT include the original $50,000 investment amount) (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 Selectbecause it has a Select Select standard deviation (and because of this, is less risky). return. A conservative investor should elect the portfolio in Beled because it has a MacBook Pro