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Question 14 4 p Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for

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Question 14 4 p Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for the Vanguard Total Stock Index (all Stocks). Lety be a random variable representing annual return for the Vanguard Balanced Index (60% stock and 40% bond). For the past several years, assume the following data. Compute Ey. 12 0 36 22 33 24 25 -12 -12 22 7 -4 29 15 23 16 15 -4 -5 -7 0 93

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