Suppose you invest $14,000 in an S&P 500 Index fund (S&P fund) and $10,000 in a total bond market fund (Bond fund). The expected returns of the S&P and Bond funds are 9% and 4%, respectively. The standard deviations of the S&P and Bond funds are 18% and 7% respectively. The correlation between the two funds is 0.30. The risk-free rate is 2%.

What is the expected return on your portfolio?

What is the standard deviation on your portfolio?

What are the Sharpe ratios for yourportfolioand the S&P fund?