Question: Expected Return Standard Deviation Stock fund (S) Bond fund (B) 15% 9 32% 23 1 9. Draw a tangent from the risk-free rate to the

 Expected Return Standard Deviation Stock fund (S) Bond fund (B) 15%

9 32% 23 1 9. Draw a tangent from the risk-free rate

Expected Return Standard Deviation Stock fund (S) Bond fund (B) 15% 9 32% 23 1 9. Draw a tangent from the risk-free rate to the opportunity set. What does your graph show for the expected return and standard deviation of the optimal risky portfolio? (LO 6-3) 10. What is the reward-to-volatility ratio of the best feasible CAL? (LO 6-3) 11. Suppose now that your portfolio must yield an expected return of 12% and be efficient, that is, on the best feasible CAL. (LO 6-4) a. What is the standard deviation of your portfolio? b. What is the proportion invested in the T-bill fund and each of the two risky funds

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