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You put half of your money in a stock portfolio that has an expected return of 14% and a standard deviation of 24%. You put
You put half of your money in a stock portfolio that has an expected return of 14% and a standard deviation of 24%. You put the rest of your money in a risky bond portfolio that has an expected return of 6% and a standard deviation of 12%. The stock and bond portfolios have a correlation of 0.55. The standard deviation of the resulting portfolio will be __________. A. More than 18% but less than 24% B. Equal to 18% C. More than 12% but less than 18% D. Equal to 12%
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