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  3. 4. you have two investment assets: a stock fund an

4. You have two investment assets: a stock fund and T-Bill. A stock fund has...

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4. You have two investment assets: a stock fund and T-Bill. A stock fund has a mean of 10% and a standard deviation of 15%. T-Bill rate is 2%. (4) a. If you invest 60% in the stock fund (i.e., ws=0.6) and 40% in T-Bill (i.e., wy=0.4), what are the expected return and standard deviation? (2) b. Calculate the weights (ie, ws and wy) that you put on the stock fund and T-Bill to achieve the minimum-variance portfolio. (2)

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