Consider investing part of the value of p in the stock market and the balance (1-p) in the bond market. The formula for

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answerhappygod
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Consider investing part of the value of p in the stock market and the balance (1-p) in the bond market. The formula for

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Consider investing part of the value of p in the stock marketand the balance (1-p) in the bond market. The formula for thereturn on total investment (R) is: R = pS + (1 p). B. Given thatthe expected stock market return on investment is 0.08 and that itsvariance is 0.5, The expected return on investment in the bondmarket is 0.05, with a 0.2 standard deviation. The stock market andbond market returns on investments have a -0.23 covariance. Findthe value of p that maximises the projected return on the totalinvestment. Additionally, determine the value of p that results inthe lowest feasible projected return on the whole investment.Give a thorough computation and describe how you get theconclusion.
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