You are considering allocating between the SP500 and a long term Treasury bond ETF. Assume the SP500 earns 10% of expected returns with 16% annual volatility. Assume the long term bond earns 6% expected returns with 10% annual volatility.
Assume a correlation of -0.6 what is the mean and standard deviation of a portfolio with 50% in stocks and 50% in bonds.
Assume a correlation of 0.6 what is the mean and standard deviation of a portfolio with 50% in stocks and 50% in bonds.
PLEASE WRITE THE STEPS do not USE EXCEL PLEASE, Finance/Economics/Stats and probability