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Consider the investment allocations for shares and cash for the pre-mixed investment options reported in the following table. Investment Mix Shares (%) Cash (%) Standard
Consider the investment allocations for shares and cash for the pre-mixed investment options reported in the following table. Investment Mix Shares (%) Cash (%) Standard deviation (%) Growth 85 15 11.2 Balanced 70 30 9.6 Conservative 30 70 7.1 Cash 0 100 4.3 (a) If shares are expected to generate a return of 9% over the next year and cash is expected to generate a return of 3%, calculate the expected return for each pre-mixed investment option. (2 marks)
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