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Standard deviation of returns for the mutual fund

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Consider the following capital market: a risk-free asset yielding 2.25% per year and a mutual fund consisting of 70% stocks and 30% bonds. The expected return on stocks is 14.50% per year and the expected return on bonds is 3.50% per year. The standard deviation of stock returns is 35.00% and the standard deviation of bond returns 15.00%. The stock, bond and risk-free returns are all uncorrelated. What is the expected return on the mutual fund? what is the standard deviation of returns for the mutual fund?

Reference no: EM133123823

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