Karen currently has $5 million invested in a long-term bond fund which has an expected return of 7% and a standard deviation of 18%. Her son, Michael, recommends her to consider changing to invest 30% of the $5 million in an equity fund and the remainder in the bond fund. The equity fund has an expected return of 16% and a standard deviation of 35%. The correlation between the fund returns is 0.1. Should Karen follow Michaels recommendation? Explain with calculations. (8 marks)