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You can invest in a stock fund and a bond fund. The expected rate of return and volatility of this stock fund are 12% and

You can invest in a stock fund and a bond fund. The expected rate of return and volatility of this stock fund are 12% and 30%, respectively. The expected rate of return and volatility of this bond fund are 4% and 8%, respectively. The correlation between both funds is 0.3.

Compute the composition of your portfolio if you have an expected rate of return target of 10%. Compute the volatility of your portfolio return.

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