Question

You put half of your money in a stock portfolio that has an expected return of 14% and a standard deviation of 24%. You put the rest of your money in a risky bond portfolio that has an expected return of 6% and a standard deviation of 12%. The stock and bond portfolios have a correlation of .55. The standard deviation of the resulting portfolio will be ________. A. more than 12% but less than 18% B. equal to 18% C. more than 18% but less than 24% D. equal to 12%

Answer 1

Answer

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Step-by-step explanation:

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