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You have the following data: standard deviation of return on a stock fund (in percent): 34.6% standard deviation of return on a bond fund (in
You have the following data:
- standard deviation of return on a stock fund (in percent): 34.6%
- standard deviation of return on a bond fund (in percent): 7.3%
- correlation between the returns on the stock and bond fund (decimal value): 0.44
- proportion of the portfolio invested in the stock fund: 0.79
Calculate the standard deviation of return on the portfolio containing this mix of the stock and bond funds.
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