An investor is considering investing in a small-cap stock fund and a general bond fund. Their returns

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An investor is considering investing in a small-cap stock fund and a general bond fund.

Their returns and standard deviations are given next and the correlation between the two fund returns is 0.10. image text in transcribed

1. If the investor requires a portfolio return of 12 percent, what should the proportions in each fund be?
2. What is the standard deviation of the portfolio constructed in Part 1?

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Investments Principles Of Portfolio And Equity Analysis

ISBN: 9780470915806

1st Edition

Authors: Michael McMillan, Jerald E. Pinto, Wendy L. Pirie, Gerhard Van De Venter, Lawrence E. Kochard

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Question Posted: Mar 21, 2024 07:01 AM

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An investor is considering investing in a small-cap stock fund and a general bond fund. Their returns

Question:

Small-cap fund, S Bond fund, B Expected Annual Return Standard Deviation of Returns 33% 19% 8% 13%

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Investments Principles Of Portfolio And Equity Analysis

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