Question 7 Suppose that you want to create a risky portfolio from combining a stock portfolio (S) and a bond portfolio (B) The expected return and standard deviation of each are: E(r) Stock (S) 12% 15% Bond (B) 6% 896 Assume the correlation coefficient between B and S is 0. If your combined portfolio of B and S has an expected return of 10.2% what are the portfolio weights on B and S, and what is the portfolio standard deviation? ws 3 and wB .7 7.18% -10.77% ws 7 and wB-3 -116% -12.9%