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You are interested in forming a portfolio consisting of two assets, a stock ETF and a bond ETF. You estimate the following risk and

You are interested in forming a portfolio consisting of two assets, a stock ETF and a bond ETF. You estimate

You are interested in forming a portfolio consisting of two assets, a stock ETF and a bond ETF. You estimate the following risk and return characteristics of each. Bond ETF E(r) 0.04 Standard deviation (SD) 0.14 Correlation Risk Free Rate Portfolio Waond a) You are considering five potential portfolios for the stock and bonds as detailed below. Please compute the risk and return characteristics for portfolio b and d. 5pts a b C d e 0 0.25 0.50 0.75 1 Wstock E(r) SD 1 0.090 0.75 0.50 0.25 0 0.2500 0.065 0.1305 -0.20 0.02 0.040 0.1400 Stock ETF 0.09 0.25

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