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Scenario Probability Rate of return of stock fund (%) Rate of return of bond fund (%) Crash 0.1 -30 -5 Poor 0.4 -2 12 Good

Scenario Probability Rate of return of stock fund (%) Rate of return of bond fund (%)
Crash 0.1 -30 -5
Poor 0.4 -2 12
Good 0.3 15 4
Excellent 0.2 40 2

Weights Portfolio expected return Portfolio SD
0.0 0.059 0.055578773
0.2 0.0646 0.056646624
0.4 0.0702 0.083629899
0.6 0.0758 0.120184691
0.8 0.0814 0.159875076
1.0 0.087 0.200850691

Calculate the weight in stock fund, expected return and standard deviation of the minimum-variance portfolio. (including steps)

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