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Q5. Mr. Jack approaches to you for investment advice. He is currently 55 years old and has Rs 80,000 in the bank. He has decided

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Q5. Mr. Jack approaches to you for investment advice. He is currently 55 years old and has Rs 80,000 in the bank. He has decided to invest his bank balance in a portfolio in which stocks and bonds are included. He is risk averse, he believes that risk free bond gives him 7.5% return and stocks at 15%. The variability (measured in standard deviation) in stock returns is 5%. He wants a return of 12% from this investment. How would you advise him in constructing the portfolio to meet his expectation? He also wants to know the risk involved in such a portfolio

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