A portfolio of risky bonds has an expected return of 4% and a standard deviation of 4%. A portfolio of stocks has an expected return of 8% and a standard deviation of 20%. The correlation between the stock and bond funds is 0.8 The risk-free rate is 3.2% In this case, the optimal risky portfolio is the portfolio that is composed of 33% of the bond fund and 67% of the risky equity. Your utility function is described as U = E(r) - 1/2 * A * vol^2, and your risk-aversion A = 4 What is the expected return of the optimal risky portfolio? (in %; 1 decimal place) 8.0 What is the volatility of the optimal risky portfolio? (in %; 1 decimal place) If you are creating a $1000 personal portfolio that is built out of the stock fund, the bond fund, and the risk-free rate, how much of the $1000 should be invested in stocks? (round to the $)