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QUESTION 6 You place 65% of your money in a stock portfolio that has an expected return of 15% and a standard deviation of 12.5%.
QUESTION 6 "You place 65% of your money in a stock portfolio that has an expected return of 15% and a standard deviation of 12.5%. You put the rest of your money in a risky bond portfolio that has an expected return of 6% and a standard deviation of 4%. The stock and bond portfolios have a correlation of 0.15. The standard deviation of the resulting portfolio will be Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05" QUESTION 7 "A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 9%, while stock B has a standard deviation of return of 10%. Stock A comprises 45% of the portfolio, while stock B comprises 55% of the portfolio. If the variance of return on the portfolio is 0.008, the correlation coefficient between the returns on A and B is Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05
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