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Business, 29.06.2021 23:10 Sushmitarai4934

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 5%. The T-bill fund is a risk-free asset. The stock fund has an expected return of 8% and a standard deviation of 23%. The bond fund has an expected return of 3% and a standard deviation of 8%%. The correlation between the risky fund returns is 2%. If an investor requires that the standard deviation of the complete portfolio to not exceed 13%, what is the portfolio weight of the optimal risky portfolio in the complete portfolio

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You are given two risky assets. The first is a stock fund and the second is a bond fund. A T-bill fu...
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