Stock S has an expected return of 0.14 while Bond B has an expected return of 0.10. The variance-covariance matrix between S and B is
T- bills offers a 0.03 rate
a.) between S and B, which one is the better investment and why.
b.) Calculate the expected return ans standard deviation of a portfolio of S and B that has the lowest risk.
c.) Calculate the expected return ans standard deviation of a portfolio of S and B that has the highest reward-to-variability ratio
d.) Between S, B, the portfolio from part (b), and the portfolio from part (c), which one is the better investment and why.