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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 10% and the expected return on bonds is 5%, propose specific feasible portfolio weights (one set of two reasonable, defensible weights that total to 100%) 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.
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Bond Weight: Stock Weight: Why?
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