QUESTION 14 You are considering three mutual funds. The first is a stock fund, the...
60.1K
Verified Solution
Link Copied!
Question
Finance
QUESTION 14 You are considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a rate of 3%. The stock fund has an expected return of 15% and a variance of 0.25. The bond fund has an expected return of 8% and a variance of 0.09. The correlation coefficient between the stock and bond funds is 0.16. If you invest $5,000 in the stock fund and $5,000 in the bond fund. What is the standard deviation of your portfolio? A. 0.097 B. 0.258 C. 0.106 D.0.311
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
