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Current Allocation: 60 percent of Asset CS, 40 percent of Asset FI Proposed Allocation: 50 percent of Asset CS, 30 percent of Asset FI, 20
Current Allocation: 60 percent of Asset CS, 40 percent of Asset FI Proposed Allocation: 50 percent of Asset CS, 30 percent of Asset FI, 20 percent of Asset PR You also consider the following historical data for the three risky asset classes (CS, FI, and PR) and the risk-free rate (RFR) over a recent investment period: You have already determined that the expected return and standard deviation for the Current Allocation are: E(Rcurrent)=7.62 percent and current=10.160 percent. a. Calculate the expected return for the Proposed Allocation. Round your answer to two decimal places. % b. Calrilate the ct.andard deviation for the Proposed Allocation. Do not round intermediate calculations. Round your answer to two decimal places. % Current Allocation: Proposed Allocation: d. Using your calculations from part (c), explain which of these two portfolios is the most likely to fall on the Markowitz efficient frontier. The -select. 7 is the most likely to fall on the Markowitz efficient frontier
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