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please answer both considering investing in three different assets. The first is a stock, the second is a long- term government bond and the third

image text in transcribedplease answer both
considering investing in three different assets. The first is a stock, the second is a long- term government bond and the third is a T-bill money market fund that yields a sure rate of 5%. Problem 2 You are (20 points) The probability distributions of both the risky assets: Expected Return Stock (S) 10% Bond (B) 9 The correlation between the stock and bond returns is 0.20. Standard Deviation 30% 21 A. Compute the expected return and standard deviation of the portfolio formed by allocating 60% of your wealth to a risky portfolio (formed by investing equally in the stock and the bond), and 40% of your wealth to the T-bill money market fund. (10 points) B. If as the investor you want an expected return of 15% from a complete portfolio C formed by using the risky portfolio and the risk-free asset, what proportions of the stock-fund, the bond- fund, and risk-free asset should you be holding in the complete portfolio?(10 points)

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