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Portfolio Analysis. Use the data in problem 1 7 and consider a portfolio with weights of . 6 0 in stocks and . 4 0

Portfolio Analysis. Use the data in problem 17 and
consider a portfolio with weights of .60 in stocks and
.40 in bonds. (LO3)
a. What is the rate of return on the portfolio in each
scenario?
b. What are the expected rate of return and standard
deviation of the portfolio?
c. Would you prefer to invest in the portfolio, in
stocks only, or in bonds only?
d. Calculate the correlation coefficient for the bond
and stock returns.
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