In the portfolio example in this section half the portfolio assets are inverted in the Dow Jones fund and the half in the weak economy fund. Recalculate the portfolio expected return and the portfolio risk.
a 30% of the portfolio assets are invested in the Dow Jones fund and 70% in a weak- economy fund.
b 70% of the portfolio assets are invested in the Dow Jones fund and 30% in a weak- economy fund.
c. Which of the three investment strategies (30%,50%, or 70% in the Dow Jones) would you recommend? Why?.