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A Stock Fund Has a Standard Deviation of 28% and a Bond

question 33

Multiple Choice

A stock fund has a standard deviation of 28% and a bond fund has a standard deviation of 16%. The correlation of the two funds is .15. What is the approximate weight of the stock fund in the minimum variance portfolio?


Definitions:

ANOVA Table

A structured representation of the components of variance analysis to determine the effects of different factors on a response variable.

Degrees of Freedom

The total number of individual quantities or values that can be attributed to a statistical distribution.

Data Table

A structured arrangement of data organized in rows and columns, facilitating data analysis and interpretation.

Test Statistic

A value calculated from sample data during a hypothesis test. It is used to determine whether to reject the null hypothesis.

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