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Q 3 : What about the risk and return characteristics of a portolio made up from the stock and bond funds? The portfolio return is
Q: What about the risk and return characteristics of a portolio made up from the stock and bond funds? The portfolio return is the weighted average of the returns on each fund with weights equal to the proportion of the portfolio investred in each fund. Suppose we form a porfolin with fill invested in the stock fund and in the bond fiund.
Calculare the expereted retum of the portfolin, then calculate the variance and the standand deviarion of the portiolio. note: the portfolio return in each scenario is the weighted average of the returns on the two unds
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