Consider the following data: The correlation between the returns on the Russell Fund and the S&P Fund is . The rate of return on Treasury Bills is 6%....
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 Consider the following data:

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The

correlation between the returns on the Russell Fund and the S&P Fund is .7. The rate of return on Treasury Bills is 6%. Which of the following portfolios is the best to hold in combination with Treasury Bills and why?

(a) Russell Fund

(b) Windsor Fund

(c) S&P Fund

(d) A portfolio of 60% Russell Fund and 40% S&P Fund.

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Top Answer

The portfolio that best holds in combination... View the full answer

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