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:

Psychosurgery

Surgical operations on the brain intended to relieve severe mental disorders.

Cognitive Therapy

A form of psychotherapy that focuses on changing unhelpful or destructive thought patterns, with the aim of influencing emotions and behaviors.

Group Therapy

A sociocultural approach to the treatment of psychological disorders that brings together individuals who share a particular psychological disorder in sessions that are typically led by a mental health professional.

Transference

In psychoanalysis, the process by which emotions originally associated with a significant person in one's life are unconsciously redirected onto the therapist.