An investment group offers the

An investment group offers their clients advice on creating a diversified investment portfolio. A client asks them to develop a portfolio that includes investment in a Domestic Growth Fund (a mutual fund composed of US stocks with a history of strong performance) and a corporate bond fund. The Domestic Growth Fund has an expected return of 7.90% with a standard deviation of 18.55%. The corporate bond fund has an expected percent return of 5.25% with a standard deviation of 4.40%. The covariance of an investment in the Domestic Growth Fund with an investment in a corporate bond fund is -12.7. (Round your answers for standard deviation to two decimal places.)

(b)If the investment group recommends that the client invest 75% in the Domestic Growth Fund and 25% in the corporate bond fund, what is the expected percent return and standard deviation for such a portfolio?

expected percent return (Do not round)standard deviation (Round to 2 decimal places)

What would be the expected return and standard deviation, in dollars, for a client investing $40,000 in such a portfolio?

expected return (Round to the nearest dollar)standard deviation (Round to the nearest dollar)

(c)If the investment group recommends that the client invest 25% in the Domestic Growth Fund and 75% in the corporate bond fund, what is the expected return and standard deviation for such a portfolio?

expected percent return (Do not round)standard deviation (Round to 2 decimal places)

What would be the expected return and standard deviation, in dollars, for a client investing $40,000 in such a portfolio?

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