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Luigi Bosca is a PM at Vineyard Funds. He will offer to wealthy clients a diversified and risky portfolio VNYRD that is constructed using 70%
Luigi Bosca is a PM at Vineyard Funds. He will offer to wealthy clients a diversified and risky portfolio VNYRD that is constructed using 70% of the equities Fund SPVIN and 30% of the bond portfolio BDVIN. SPVIN has an expected return and volatility of 20% and 22%, while BDVIN has an expected return of 5% and volatility of 8%. The correlation between SPVIN and BDVIN is -0.5. The expected return and the volatility of VNYRD will be _________ and ________. Mark the CORRECT answer. Round it to second decimal case a. 12.50% and 15.00% b. 15.50% and 16.73% c. 15.50% and 17.92% d. 15.50% and 14.35%
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