Question: Consider the following data: The correlation between the returns on the Russell Fund and the S&P Fund is 0.7. The rate on Tbills is 6%.

Consider the following data: The correlation between the returns on the Russell Fund and the S\&P Fund is 0.7. The rate on Tbills is 6%. Which of the following portfolios would you prefer to hold in combination with Tbills and why? j) Russell Fund ii) Windsor Fund iii) S\&P Fund iv) A portfolio of 30% Russell Fund and 70\% S\&P Fund

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