Question
Solution Please Suppose for some reason you are required to invest 50% of your portfolio in bonds and 50% in stocks. The standard deviation for
Solution Please
Suppose for some reason you are required to invest 50% of your portfolio in bonds and 50% in stocks. The standard deviation for stock returns is 25% and for bond returns is 12%. The standard deviation of your portfolio is 15%, what must be the correlation coefficient between stock and bond returns?
A) .1459
B) .2183
C) .4
D) .6789
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International Finance Transactions Policy And Regulation
Authors: Hal Scott, Anna Gelpern
20th Edition
1609303164, 978-1609303167
