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

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The probability distribution of two separate risky funds (a stock fund and a bond fund) is given: Expected Retum 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 The probability distribution of two separate risky funds (a stock fund and a bond fund) is given: Expected Retum 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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