2. The expected return of a stock fund is 10% and standard deviation is 30%, and...
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2. The expected return of a stock fund is 10% and standard deviation is 30%, and the expected return of a bond fund is 5% and standard deviation is 10%. Correlation: 0.10, Risk-Free Return: 1%. Find the least diversified and optimal portfolio among the following: wS r P Sig P Sharpe 10 0.2 0.4 0.6 0.8 1.0 10 30 2. The expected return of a stock fund is 10% and standard deviation is 30%, and the expected return of a bond fund is 5% and standard deviation is 10%. Correlation: 0.10, Risk-Free Return: 1%. Find the least diversified and optimal portfolio among the following: wS r P Sig P Sharpe 10 0.2 0.4 0.6 0.8 1.0 10 30
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