Suppose that mutual fund a has an expected return of 10 and


Question: 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.

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Finance Basics: Suppose that mutual fund a has an expected return of 10 and
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