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Problem: The correlation between the returns on the Russell Fund and the S&P Fund is 0.7. The rate on T-bills is 6%. Question: Which of

image text in transcribed Problem: The correlation between the returns on the Russell Fund and the S\&P Fund is 0.7. The rate on T-bills is 6%. Question: Which of the following portfolios would you prefer to hold in combination with Tbills and why? a) WindRussell Fund b) Windsor Fund c) S\&P Fund d) A portfolio of 60% Russell Fund and 40\% S\&P Fund

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