Business
Business, 07.11.2019 20:31, edjiejwi

You are trying to build the best possible risky portfolio for your investment clients. you have two risky assets available to you: a risky stock with an expected excess return of 0.222 and a standard deviation of 0.91, and a risky bond with an expected excess return of 0.034, and a standard deviation of 0.663. if these two assets have a coefficient of correlation of -0.27, what proportion of the money you invest in risky assets should you put in the bond? an answer of 0 means invest no money in the bond, an answer of 1 means put all of your money in the bond.

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