Large Fund Bond Fund

Returns 12.15% 6.93%

SD 24.43% 9.96%

Correlation 0.15

Portfolios LF Proportion BF Proportion Expected Return Standard Dev var

1 1 0 12.15% 24.43%
2 0.9 0.1 11.63% 24.40% 0.0595231
3 0.8 0.2 11.11% 24.24% 0.05874521
4 0.7 0.3 10.58% 23.94% 0.05733236
5 0.6 0.4 10.06% 23.50% 0.05522681
6 0.5 0.5 9.54% 22.88% 0.05234501
7 0.4 0.6 9.02% 22.03% 0.04854894
8 0.3 0.7 8.50% 22.69% 0.05147815
9 0.2 0.8 7.97% 21.00% 0.04407947
10 0.1 0.9 7.45% 18.18% 0.03306055
11 0 1 6.93% 9.96%

varA = 0.05968 0.05968

varB = 0.00993 0.00993
corr = cov/(.2443*.0996) varA^2 0.003562
cov = .15*(.2443*.0996) varB^2 9.86E-05
cov = .00365 0.00365

Portfolios LF Proportion BF Proportion Expected Return Standard Dev var

1 1 0 12.15% 24.43% 0.05968249
2 0.9 0.1 11.63% 24.40% 0.05952484
3 0.8 0.2 11.11% 24.24% 0.05875052
4 0.7 0.3 10.58% 23.94% 0.05733458
5 0.6 0.4 10.06% 23.50% 0.05522767
6 0.5 0.5 9.54% 22.88% 0.05234644
7 0.4 0.6 9.02% 22.03% 0.04855323
8 0.3 0.7 8.50% 20.88% 0.04361071
9 0.2 0.8 7.97% 19.25% 0.03706189
10 0.1 0.9 7.45% 16.67% 0.02779363
11 0 1 6.93% 9.96% 0.00992975

Efficient Frontier
14.00%

12.00%
 Efficient Frontier
14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%
8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% 22.00% 24.00% 26.00%
var^2

0.003543
0.003451
0.003287
0.00305
0.00274
0.002357
0.00265
0.001943
0.001093

Proportion squared
var^2 PA^2 PB^2
0.003562 1 0
0.00354321 0.81 0.01
0.00345162 0.64 0.04
0.00328725 0.49 0.09
0.0030501 0.36 0.16
0.00274015 0.25 0.25
0.00235742 0.16 0.36
0.00190189 0.09 0.49
0.00137358 0.04 0.64
0.00077249 0.01 0.81
9.86E-05 0 1
 Returns SD
Bledsoe Large 12.15% 24.43%
Bledsoe Bond Fund 6.93% 9.96%
Covariance 0.003649842
Correlation 0.15
Variance
Weight of Stock Fu Expected Return Standard DeviationVariance squared Variance Standard Deviation
0% 6.93% 9.96% 0.00480249 0.0693 0.26324893
10% 7.45200% 26.18% 0.00469461096 0.06851723 0.26175796
20% 7.97400% 26.37% 0.00483203304 0.06951283 0.26365285
30% 8.49600% 26.87% 0.00521475624 0.07221327 0.26872527
40% 9.01800% 27.65% 0.00584278056 0.07643808 0.27647438
50% 9.5400% 28.63% 0.006716106 0.08195185 0.28627234
60% 10.06200% 29.75% 0.00783473256 0.08851402 0.29751307
70% 10.58400% 30.97% 0.00919866024 0.09590965 0.30969283
80% 11.10600% 32.24% 0.01080788904 0.103961 0.32242983
90% 11.62800% 33.55% 0.01266241896 0.11252741 0.33545106
100% 12.15% 24.43% 0.01476225 0.1215 0.3485685
 corr = cov/(.2443*.0996)
cov = .15*(.2443*.0996)
cov = .00365

0.00136242
tandard Deviation