Question: please answer question d, e, f 4. The following presents the performance of stock and bond funds under various scenarios. The T-bill rate is 4%.

please answer question d, e, f

4. The following presents the performance of stock and bond funds under various scenarios. The T-bill rate is 4%. a. Calculate the expected returns of the stock and bond funds. ( 2 marks) b. Calculate the standard deviations of the stock and bond funds. ( 2 marks) c. Calculate the correlation coefficient of the stock and bond funds. ( 3 marks) d. Calculate the weight in stock fund, expected return and standard deviation of the optimal risky portfolio. ( 6 marks) e. Calculate the Sharpe ratio for the optimal risky portfolio. ( 2 marks) f. Suppose Andy decides to invest in the optimal risky portfolio a proportion ( y ) of his total investment budget so that his overall portfolio will have an expected rate of return of 8%. i. Determine the proportion y. ( 2 marks) ii. Calculate the standard deviation of Andy's portfolio. ( 2 marks)

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