Question: Question 4 (5 points) Investor 1 averaged a 20% return and investor 2 averaged 25%. However, the beta of investor 1 is 2 while the

 Question 4 (5 points) Investor 1 averaged a 20% return and

Question 4 (5 points) Investor 1 averaged a 20% return and investor 2 averaged 25%. However, the beta of investor 1 is 2 while the beta of investor 2 is 3. T-bill rate is 8% and market return is 14%. Which investor is the better investor? OI do not know the answer (Iskandar Arifin: Please do not pick this one. This is not the correct answer.) O Investor 1 Both are equally good Investor 2 Question 5 (5 points) You are given two risky assets. The first is a stock fund and the second is a bond fund. A T-bill fund yields a rate of 8%. The T-bill fund is a risk-free asset. The stock fund has an expected return of 10% and a standard deviation of 23%. The bond fund has an expected return of 7% and a standard deviation of 1%. The correlation between the risky fund returns is 2%. What is the expected return and standard deviation of a risky portfolio that consists of 20%% in stock and the rest in bond? None of the options are correct O 7.0031%; 4.6148% 07.0131%; 8.6148% 7.6000%; 4.6848%

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