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Please show step by step 1. Consider 123 Fund (which is invested in 35% High risk stock and 65% normal bonds). Assume you have the

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1. Consider 123 Fund (which is invested in 35% High risk stock and 65% normal bonds). Assume you have the following historical data of annual returns: Return S.D. Normal Stock 8% 20% Risky Bonds 10% 35% High Risk Stock 14% 40% Normal Bonds 6% 10% Assume High Risk Stocks and Normal Bonds have correlation coefficient of 0. 14 Find the standard deviation of 123. Please use 5 decimal places in your response 2. Consider that the investment fund ABC Fund exists and it is 75% invested in normal stock and 25% risky bonds Assume you have the following historical data of annual returns: Return S.D. Normal Stock 7.6% 20% Risky Bonds 11.5% 35% High Risk Stock 14% 40% Normal Bonds 6% 10% What is the expected return of ABC fund? Please use 5 decimal places in your response

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