Question
A portfolio is composed of two assets. Stock A has a standard deviation of return of 35%; and Bond B has a standard deviation of
A portfolio is composed of two assets. Stock A has a standard deviation of return of 35%; and Bond B has a standard deviation of return of 15%. The correlation coefficient between the returns on A and B is .45. The risky portfolio is made up of 40% invested in Stock A and 60% invested in Bond B. The standard deviation of this portfolio is _________.
A) 23%
B)19.76%
C)18.45%
D)17.67%
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Financial Management Of Health Care Organizations
Authors: William N. Zelman, Michael J. McCue, Alan R. Millikan, Noah D. Glick
2nd Edition
063123098X, 9780631230984
