investment$-$grade bond fund offered by Vanguard has an expected return of $5\mathrm{.}31\%$ with a standard deviation of $2\mathrm{.}35\%.$

to four decimal places.$)$

$($b$)$ What is the expected return $($as a percent$)$ for a portfolio composed of $60\%$ invested in the stock index fund and $40\%$ invested in the investment$-$grade bond fund?

$\%$

$\%$

$($c$)$ What is the expected return $($as a percent$)$ for a portfolio composed of $40\%$ invested in the stock index fund and $60\%$ invested in the investment$-$grade bond fund?

$1\%$

$\%$

$($d$)$ Which of the portfolios in part $($b$)$ or $($c$)$ has the highest expected return?

Invest $60\%$ in the stock index fund and $40\%$ in the investment$-$grade bond fund.

Invest $40\%$ in the stock index fund and $60\%$ in the investment$-$grade bond fund.

Which portfolio has the lowest standard deviation?

Invest $60\%$ in the stock index fund and $40\%$ in the investment$-$grade bond fund.

Invest $40\%$ in the stock index fund and $60\%$ in the investment$-$grade bond fund.

$($e$)$ Which portfolio would should be preferred?

Invest $60\%$ in the stock index fund and $40\%$ in the investment$-$grade bond fund.

Invest $40\%$ in the stock index fund and $60\%$ in the investment$-$grade bond fund.

Is the portfolio you chose guaranteed to perform better than the other portfolio in any given year?

Yes

No