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Consider the following two assets. The first is a stock fund, the second is a...

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Finance

Consider the following two assets. The first is a stock fund, the second is a long-term corporate bind fund. The probability distrubition of the funds is as follows:

Expected Ret . Std DEv

Stock fund 18% . 25%

Bond fund 11% 18%

The correlation between the fund returns is 0.4. What is the investment proportion in the minimum variance portfolio of the bond fund?

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