An investor has 80% of her portfolio in a stocks fund and 20% in a market-index fund. The mean monthly return rate of th

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answerhappygod
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An investor has 80% of her portfolio in a stocks fund and 20% in a market-index fund. The mean monthly return rate of th

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An investor has 80% of her portfolio in a stocks fund and 20% in
a market-index fund. The mean monthly return rate of the
market-index fund is 1.5%, with standard deviation 0.9%. The stocks
fund has the mean monthly return rate of 2.2%, with standard
deviation 1.2%. The correlation between the two funds is 0.13. What
is the mean and standard deviation of her portfolio? How does this
compare if she were to equally invest in stocks fund and
market-index fund? explain your findings in words
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