Suppose the Investor is based in Europe and uses euro as the currency.

Expected return on MSCI equity index is 7%

Expected return on bonds is 4%

The risk free rate is 1%

Standard deviation of MSCI index is 15%

Standard deviation of bond is 6%

The correlation between MSCI equity index and bond is 0.3

What is the standard deviation of a 60% and 40% in equity and bond is

6%

None of the rest

16%

15%

9.986%