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5. You put half of your money in a stock portfolio that has an expected return of 14% and a standard deviation of 24%.

 

5. 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. What is the standard deviation of the resulting portfolio? 6. The standard deviation of return on investment A is.10, while the standard deviation of return on investment B is .05. If the covariance of returns on A and B is .0030, what is the correlation coefficient between the returns on A and B?

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