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Suppose that investor can only invest in the following stocks: Stock A: E(Ra)=10%; S.D(Ra)=5% Stock B : E(Rb)=7% ; S.D(Rb)=8% Corr(Ra, Rb)=0.3 a. An investor

Suppose that investor can only invest in the following stocks: Stock A: E(Ra)=10%; S.D(Ra)=5% Stock B : E(Rb)=7% ; S.D(Rb)=8% Corr(Ra, Rb)=0.3 a. An investor wants to invest in a portfolio with E(Rp) of 7%. Calculate the S.D of this portfolio b. Your bank is offering you to invest in the following fund: E(Rfund)= 7.9% and the standard deviation is 6.2169%. Is this a good fund or bad? Explain

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