Question
An investment portfolio consists of 40% stocks, 30% bonds, and 30% cash. The stocks have a standard deviation of 12%, bonds have a standard deviation
An investment portfolio consists of 40% stocks, 30% bonds, and 30% cash. The stocks have a standard deviation of 12%, bonds have a standard deviation of 8%, and cash has a standard deviation of 2%. If the correlation coefficient between stocks and bonds is 0.6, and the correlation coefficient between stocks and cash is -0.2, what is the standard deviation of the portfolio?
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Precalculus
Authors: Michael Sullivan
9th edition
321716835, 321716833, 978-0321716835
