Question 9 10 pts Consider a risky portfolio IP) comprised of two awets: A bond fund (8) and a stock fund (5). According to portfolio theory, the variance of such portfolio will depend on the weight of exchat in the portfolio, the standard deviation of each asset in the portfolio and the correlation between these two assets as given by the formula o? - WOW-03+20W. W Pas Based on this formula the minimum variance portfolio will have the following weight We in the bond fund: - Os Pus 00-2.0-05-PUS Assuming that the standard deviation for the stock fund (S) is greater than the standard deviation for the bond fond (B) 0.0.03>) when bond tund (18) and the stock fund (5) are perfectly negatively correlated (e. correlation-1} the following can be said about the minimum variance portfolio w The weight in the tond fund is greater than the weight in the stock funds o the weight in the stack and breater than the weight in the hond tund. The weight in the stock und The weight in the band fund is the same as the weight in the stock fued ISI