Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

15. You invested 30% in the stock fund and the rest in the bond fund. The return distribution of the risky funds are shown in

image text in transcribed
15. You invested 30% in the stock fund and the rest in the bond fund. The return distribution of the risky funds are shown in the table below. The correlation between the fund returns is 0.2. Expected return 15% Standard deviation Stock fund Bond fund 30% 8% 20% What's the standard deviation of your portfolio? 1) 18% 2) 23% 3) 26% 4) 0%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Shape Up Your Finances

Authors: Ian Birt

2nd Edition

1925716422, 978-1925716429

More Books

Students also viewed these Finance questions

Question

What are some of the possible scenes from our future?

Answered: 1 week ago