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b ) Intuition is the key ingredient to answering this question effectively. If the expected return on stocks is 1 0 % and the expected
b Intuition is the key ingredient to answering this question effectively. If the expected return on stocks is and the expected return on bonds is propose specific feasible portfolio weights one set of two reasonable, defensible weights that total to of the two asset classes and explain why you proposed them. Be sure to utilize mean variance concepts, the stated expected returns and what you know about stock & bond risk.
Bond Weight: Stock Weight: Why?
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