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(i) What are the weights in the Mean-Variance Efficient portfolio (MVE) portfolio? (ii) What is the expected return and volatility of the Mean-Variance Efficient portfolio

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(i) What are the weights in the Mean-Variance Efficient portfolio (MVE) portfolio?

(ii) What is the expected return and volatility of the Mean-Variance Efficient portfolio (MVE) portfolio?

Expected Return: E(r) Volatility: o(r) Risk-Free Fund (f) 0.035 0.000 Long-Term Bond Fund (B) 0.060 0.075 Stock Market Index Fund (S) 0.110 0.18 Correlation between B and S: Pes = 0.75

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