The following table repeats the annual total returns on the MSCI Germany Index previously given and also gives the annual total returns on the JP Morgan Germany five- to seven-year government bond index (JPM 5-7 Year GBI, for short). During the period given in the table, the International Monetary Fund Germany Money Market Index (IMF Germany MMI, for short) had a mean annual total return of 4.33 percent.

Calculate the annual returns and the mean annual return on a portfolio 60 percent invested in the MSCI Germany Index and 40 percent invested in the JPM Germany GBI.

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JPM Germany 5-7 Year GBI (%) MSCI Germany Index (%) Year 15.74 46.21 1993 1994 -3.40 -6.18 8.04 1995 18.30 22.87 8.35 1996 45.90 1997 6.65 1998 20.32 12.45 41.20 1999 -2.19 2000 -9.53 7.44 5.55 2001 -17.75 -43.06 2002 10.27