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The probability distribution of two separate risky funds (a stock fund and a bond fund) is given: Expected Return Standard Deviation Stock fund (S) 19%

The probability distribution of two separate risky funds (a stock fund and a bond fund) is given: Expected Return Standard Deviation Stock fund (S) 19% 48% Bond fund (B) 9 42 Correlation between the two risky funds is 0.18 Solve for the proportions of funds needed in the stock portfolio to attain the optimal risky portfolio.

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