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Round all answers in this problem to 3 decimal places. J . P . Morgan Asset Management publishes information about financial investments. Between 2 0

Round all answers in this problem to 3 decimal places.
J.P. Morgan Asset Management publishes information about financial investments. Between 2002 and 2011 the expected return for the S&P 500 was 5.04% with a standard deviation of 19.45% and the expected return over that same period for a core bonds fund was 5.78% with a standard deviation of 2.13%. The publication also reported that the correlation between the S&P 500 and core bonds is -.32. You are considering portfolio investments that are composed of an S&P 500 index fund and a core bonds fund.
Using the information provided, determine the covariance between the S&P 500 and core bonds.
For each of the following portfolios, find the expected return and standard deviation (in percentages):
\table[[Portfolio,Expected Return,Standard Deviation],[\table[[(A)50% invested],[in an S&P 500],[index fund and],[50% in a core],[bonds fund]],,],[,],[,],[%,%],[,],[(B)20% invested],[\table[[in an S&P 500],[index fund and],[80% in a core],[bonds fund]],,],[,],[%,%],[,],[\table[[(C)80% invested],[in an S&P 500],[index fund and],[20% in a core],[bonds fund]],,],[,],[,],[%,%],[,]]
Of the three portfolios above, which one would you recommend for a
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