A Stock Fund Has a Standard Deviation of 16% and a Bond

question 44

Multiple Choice

A stock fund has a standard deviation of 16% and a bond fund has a standard deviation of 4%. The correlation of the two funds is .11. What is the weight of the stock fund in the minimum variance portfolio?

• A)3.47%
• B)6.48%
• C)11.92%
• D)14.67%
• E)18.22%

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Definitions:

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