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Suppose you have some money to invest-for simplicity, $1-and you are planning to put a fraction w into a stock market mutual fund and the

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Suppose you have some money to invest-for simplicity, $1-and you are planning to put a fraction w into a stock market mutual fund and the rest, 1w, into a bond mutual fund. Suppose that $1 invested in a stock fund yields Rs after 1 year and that $1 invested in a bond fund yields Rb. suppose that Rs is random with mean 0.08(8%) and standard deviation 0.07 , and suppose that Rb is random with mean 0.05(5%) and standard deviation 0.04 . The correlation between Rs and Rb is 0.25 . If you place a fraction w of your money in the stock fund and the rest, 1w, in the bond fund, then the return on your investment is R=wRs+(1w)Rb. Suppose that w=0.51. Compute the mean and standard deviation of R. The mean is (Round your response to three decimal places.) The standard deviation is . (Round your response to three decimal places.)

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