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Ch 6 Optimal Risky Q1 The following stock fund and bond fund have a correlation coefficient= -0.3 and the risk-free rate is 2.5%. Asset Expected

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Ch 6 Optimal Risky Q1 The following stock fund and bond fund have a correlation coefficient= -0.3 and the risk-free rate is 2.5%. Asset Expected return Standard deviation Stock fund 12% 30% Bond fund 8% 25% What is the expected return on the optimal risky portfolio created by the two funds ? -% (rounded to two decimal places) Numeric Response

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