Given the large-cap stock index and the government bond index data in the following table, calculate the expected mean return and standard deviation of return for a portfolio 75 percent invested in the stock index and 25 percent invested in the bond index
Assumed Returns, Variances, and Correlations
Large-Cap Stock Index Government Bond Index
Expected return 15% 5%
Variance 225 100
Standard Deviation 15% 10%
A. Mean and geometric mean of the rate of return
B. Variance and standard deviation of the rate of return
C. Covariance and correlation coefficient of the rate of return.
The solution computes return, variance, standard deviation, mean, geometric mean, covariance, correlation coefficient with given set of data.