I. stock has mean of 10% and stdev of 20%; il bond has mean of 6% and stdev of 12%; ili correlation b/w stock and bond of -0.4; iv. Risk free rate for cash lending and borrowing is at 2%. a. What is the mean and stdev of a portfolio of that is 60% in stoc d. You want to mix portfolio in Q3b with cash, in order to match the stdev risk of portfolio in Q3a. What is your cash position? What is the resulting mean return of the portfolio? (3 points) e. if you want to target 10% stdev risk per year, how would you combine Q3b risk parity portfolio with cash? What are the portfolio weights in cash, stock, and bond respectively? What are the mean returns for portfolio? (3 point) I. stock has mean of 10% and stdev of 20%; il bond has mean of 6% and stdev of 12%; ili correlation b/w stock and bond of -0.4; iv. Risk free rate for cash lending and borrowing is at 2%. a. What is the mean and stdev of a portfolio of that is 60% in stoc d. You want to mix portfolio in Q3b with cash, in order to match the stdev risk of portfolio in Q3a. What is your cash position? What is the resulting mean return of the portfolio? (3 points) e. if you want to target 10% stdev risk per year, how would you combine Q3b risk parity portfolio with cash? What are the portfolio weights in cash, stock, and bond respectively? What are the mean returns for portfolio? (3 point)