Question: 2 . You have $ 1 0 , 0 0 0 saved up to invest for a year and are considering stocks ( S )
You have $ saved up to invest for a year and are considering stocks S andor shortterm Treasury bills T The returns from both sources are judged uncertain, of course, as the following probability table indicates:
a If you split your investment in stock and in Treasury bills, what would be the expected return and standard deviation? points
b Are the return of stock and bond independent? points
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