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A portfolio invests, equally (50/50) in two funds, Stones and Sticks. The return from Stones fluctuates by about 5% year-to-year and the return from Sticks

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A portfolio invests, equally (50/50) in two funds, Stones and Sticks. The return from Stones fluctuates by about 5% year-to-year and the return from Sticks also fluctuates by about 5% year-to-year. They don't move perfectly in tandem, however (i.e., they are not perfectly correlated). What is the typical year-to-year fluctuation for the portfolio? Exactly 5% Greater than 5% No way to know O Less than 5%

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