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If you own a stock fund and a bond fund, then the standard deviation of a portfolio comprised of 50% of each will be: a)

If you own a stock fund and a bond fund, then the standard deviation of a portfolio comprised of 50% of each will be:

a) Lower than the weighted average of the bond fund standard deviation and stock fund standard deviation.

b) Higher than the weighted average of the bond fund standard deviation and stock fund standard deviation.

c) Equal to the weighted average of the bond fund standard deviation and stock fund standard deviation.

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