A Stock Fund Has a Standard Deviation of 18% and a Bond

question 70

Multiple Choice

A stock fund has a standard deviation of 18% and a bond fund has a standard deviation of 10%. The correlation of the two funds is .15. What is the approximate weight of the stock fund in the minimum variance portfolio?

• A)11%
• B)15%
• C)20%
• D)24%
• E)27%

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