Question
You have a stock fund with an expected return of 12% and a standard deviation of 22%, a corporate bond fund with an expected return
You have a stock fund with an expected return of 12% and a standard deviation of 22%, a corporate bond fund with an expected return of 6% and a standard deviation of 18% and the risk free rate is 4%. The correlation between the stock and bond funds is 0.15. What is the standard deviation of the optimal portfolio? Answer in percentages, with one decimal point. Answer:
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Advanced Accounting
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
12th edition
1305084853, 978-1305464803, 130546480X, 978-1305799448, 978-1305084858
