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Suppose you figured out the optimal risky portfolio which you have to weight 38.16% bond and 61.84% stock fund. Suppose you want to make your

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Suppose you figured out the optimal risky portfolio which you have to weight 38.16% bond and 61.84% stock fund. Suppose you want to make your complete portfolio, such as 50% risk-free and the other 50% in the optimal risky portfolio, find your complete portfolio return and risk. Expected return Std. dev. Bond fund (B) 10% 20% Stock fund (E) 15% 28% Optimal risky portfolio ? 20.59% Complete port: 50/50 Correlation BE = 0.25 Risk free rate, Rp = 6% O 11.55%; 13.30% 9.55%; 10.30% O 7.55%; 8.30% 6.55%; 7.30% 8.55%; 9.30%

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