Question
Suppose that you are considering investing in a stock fund and bond fund. Below are historic returns and standard deviation. Investment Expected Return, % Standard
- Suppose that you are considering investing in a stock fund and bond fund. Below are historic returns and standard deviation.
| Investment | Expected Return, % | Standard Deviation, % |
| Stock Fund | 15 | 21 |
| Bond Fund | 7 | 15 |
If the correlation between the two funds is 0.15, what are the investment proportions in the minimum variance portfolio of the two risky funds and what is the expected return and standard deviation of its rate of return?
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The Everything Improve Your Credit Book
Authors: Justin Pritchard
1st Edition
1598691554, 978-1598691559
