Question: . Discrete probability distribution ( 1 2 points ) An investor is evaluating asset portfolio combinations. The following information about the returns on two assets

. Discrete probability distribution (12 points)An investor is evaluating asset portfolio combinations. The following information about the returns on two assets has been collected: AssetStocksBondsMean.14.07Standard deviation.19.021. Portfolio Option 1: Compute the expected value and standard deviation of a portfolio composed of 60% of stocks and 40% of bonds. The coefficient of correlation is .2.2. Portfolio Option 2: Compute the expected value and standard deviation of a portfolio composed of 80% of stocks and 20% of bonds. The coefficient of correlation is .2.3. Assume that our investor prefers a conservative investment strategy, a.k.a. they dont like risky and volatile assets. Which portfolio combination option should they choose? Why?

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