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From the following information find the capital allocation in risk free asset Correlation between funds 0.2 Return on risk free assets 4% Expected return at
From the following information find the capital allocation in risk free asset
| Correlation between funds | 0.2 | |
| Return on risk free assets | 4% | |
| Expected return at CAL | 9% | |
| Assets | Standard deviation | Expected return |
| Stock fund | 20% | 12% |
|
|
|
|
| Bond fund | 10% | 6% |
- 10.71%
- 9.71%
- 13.71%
- 13.39%
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