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Business, 03.06.2021 01:00 divanov

Suppose that mutual fund A has an expected return of 10% and a standard deviation of 15%. Mutual fund B has an expected return of 15% and a standard deviation of 30%. The correlation coefficient between A and B is +0.3. (1) Please plot the feasible set or the opportunity set, i. e., attainable portfolios, by alternating the mix between the two funds. (2) What are the expected return and standard deviation for a portfolio comprised of 30% fund A and 70% fund B? (3) Suppose that the risk-free asset has an expected return of 5%. Using only fund B and the risk-free asset, plot the feasible set

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