Percival Hygiene has $15 million invested in long-term corporate bonds. This bond portfolio's expected annual rate of return is 9%, and the annual standard deviation is 12%. Amanda Reckonwith, Percival's financial adviser, recommends that Percival consider investing in an index fund that closely tracks the Standard & Poor's 500 index. The index has an expected return of 12%, and its standard deviation is 16%. Question: Could Percival do better by investing $4.5 million (30% of its wealth) in the corporate bond portfolio, and the rest in the index fund? The correlation between the bond portfolio and the index fund is +0.3. No, because investing in corporate bonds and in the index yields a lower return and higher risk than investing the $15 million in corporate bonds. Yes, because investing in corporate bonds and in the index yields a higher return and lower risk than investing the $15 million in corporate bonds. We cannot tell for sure, because investing in corporate bonds and in the index yields a lower retum but it also yields a lower risk than investing the $15 million in corporate bonds. Yes, because investing in corporate bonds and in the index yields a higher return and higher risk than investing the $15 million in corporate bonds. We cannot tell for sure, because investing in corporate bonds and in the index yields a higher return but it also yields a higher risk than investing the $15 million in corporate bonds