Question

Fill in the Investment Opportunity set table for stocks and bonds below. and explain why your...

  1. Fill in the Investment Opportunity set table for stocks and bonds below. and explain why your results vary when the weights are different. (4/. )

E(rS)=10

E(rB)=5

S=18.63

B=8.27

Cov= -74.8

Portfolio Weights

Portfolio expected return E(rp)

       Portfolio Standard Deviation

WS

WB

70%

60%

                       

Explanation:

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