D E F A B C Chapter 11 A Job at East Coast Yachts, Part 2 N Input area (from Chapter 10): 10-year annual return Standard deviation 10.73% 26.73% Bledsoe Large Company Stock Fund 8.04% 10.34% Bledsoe Bond Fund Risk-free rate (historic) 3.60% 10 0. 16 12 Correlation 13 14 15 Output area: 16 17 Portfolio standard Weight of stock fund Portfolio E(R) deviation 18 0% 19 20 10% 21 20% 22 30% 23 40% 24 50% 60% 26 70% 80% 28 90% 29 100% 30 31 Dominant portfolio: 17.27% 32 Weight of stock fund 33 Weight of bond fund 34 Standard deviation 35 Expected return 36 37 Minumum variance portfolio: 38 Weight of Bledsoe large cap stock fund 39 Weight of Bledsoe bond fund 40 Expected return 41 Variance 42 Standard deviation