Use the following portfolio information to answer this question. Assets Portfolio Allocation % Expected Rate of...

Use the following portfolio information to answer this question.

Assets	Portfolio Allocation %	Expected Rate of Return	Expected Standard Deviation
Risk-Free Assets
T-Bills	20%	2.0%	0

Risky Assets
Bonds	50%	6.0%	10%
Stocks	30%	20.0%	34%

1. If you had $100,000 to invest in this portfolio, based on the allocation above—including cash—compute the expected HPR% (use % and two decimals).

2. Assuming the correlation between stocks and bonds is negative (−1), compute the standard deviation of the combined risky portfolio (please use two decimals rounded up/down and % i.e. 0.4056, answer 40.56)

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jeff jeffy answered 1 year ago

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