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Q3. Portfolio Returns i. stock has mean of 8% and stdev of 18%; ii bond has mean of 6% and stdev of 12%; iii
Q3. Portfolio Returns i. stock has mean of 8% and stdev of 18%; ii bond has mean of 6% and stdev of 12%; iii correlation b/w stock and bond of -0.4; iv. Risk free rate for cash lending and borrowing is at 2%. a. What is the mean and stdev of a portfolio of that is 60% in stock and 40% in bond(s)? b. What is the mean and stdey of a fully invested yet unleveraged portfolio in stock and bond, that assign weights based on inverse of VARIANCE risk (4
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