Question: Suppose now that your portfolio must yield an expected return of 1 2 % and be efficient, that is , on the best feasible CAL.

Suppose now that your portfolio must yield an expected return of 12% and be efficient, that is, on the best feasible CAL. What is the proportion invested in the T-Note fund and each of the two risky funds? Expected return Share fund 12% Bond fund 12% Standard deviation Share fund 32% Bond fund 23% T-Note cash return 5.50% and correlation between fund returns is 0.15

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