Your client is considering investing in two securities: an S&P 500 Index Fund, with a mean return of 10%, and a standard deviation of 20%, and a Corporate Bond Index Fund, with a mean return of 6%, and a standard deviation of 10%. The correlation between the two assets is 0.3. Assume he can invest risk-free at 2%, and borrow risk-free at 4%.

1.Assume that your client wants to combineone of these securities onlywith the risk-free rate (either a long or short position in the risk free asset). You want to achieve a target standard deviation of 15%. What is the best expected return you could achieve?

2.Continue to assume that the client has access only to the three assets above (stock fund, bond fund, and risk-free rate either long or short). What advice would you give your client on what positions he should take in these assets relative to the assumptions he is making under question a)?Assuming he still wants a standard deviation of 15%, what is the highest expected return you can obtain for him?

This is the whole question, there's no additional information