Question: Please show work Assets Expected Return Standard Deviation Stock fund 14% 26% Bond fund 7% 13% The correlation coefficient between the returns of the stock

Please show work

Assets

Expected Return

Standard Deviation

Stock fund

14%

26%

Bond fund

7%

13%

The correlation coefficient between the returns of the stock fund and the bond fund is 0.45. The return on the risk-free asset is 3%.

Calculate the risk and returns of a portfolio using proportions of the stock and the fund from 0 to 100% in increments of 25%. Round to the second decimal (X.XX) and tabulate your results below. (1 pt each, 10 total)

Weight in Stock

Weight in Bond

Expected Return

Standard deviation

0

1

0.25

0.75

0.5

0.5

0.75

0.25

1

0

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