Question: Suppose that in problem 5.13 you wanted to create a portfolio that consists of a corporate bond fund and a common share fund. a. Calculate

Suppose that in problem 5.13 you wanted to create a portfolio that consists of a corporate bond fund and a common share fund.

a. Calculate the portfolio expected return and portfolio risk for each of the following percentages invested in a corporate bond fund:

i. 30%

ii. 50%

iii. 70%

b. On the basis of the results of your calculations in (a), which portfolio would you recommend? Explain.

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