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From the following information find the capital allocation in risk-free asset. Correlation between funds 0.2000 Return on risk-free asset 4.00% Expected return at CAL 9.00%

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From the following information find the capital allocation in risk-free asset. Correlation between funds 0.2000 Return on risk-free asset 4.00% Expected return at CAL 9.00% Assets Standard deviation Expected return Stock fund 20.0% 12.0% Bond fund 10.0% 6.0% (A) 10.71% (B) 9.71% (C) 13.71% (D) 13.39%

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