An investor has 50000 in a risky mutual fund and 30000

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An investor has $50,000 in a risky mutual fund and $30,000 invested in t-bills with a return of 5%. The mutual fund has an expected return of 15% and a standard deviation of 25%. Using a second mutual fund with an expected return of 20% and standard deviation of 40% can you improve the investors position by keeping the risk in the portfolio the same while increasing the expected return and if so how much money should the investor put in the second mutual fund and the t-bill respectively.

Reference no: EM13618025

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