CP 6. 23 portfolio risk and corre

You put half of your money in a stock portfolio that has an expected return of 14% and a standard deviation of 19%. You put the rest of your money in a risky bond portfolio that has an expected return of 6% and a standard deviation of 10%. The stock and bond portfolios have a correlation of 0.55. The standard deviation of the resulting portfolio will be ________________.

Multiple Choice

• equal to 10%

• equal to 15%

• more than 15% but less than 19%

• more than 10% but less than 15 %