A Stock Fund Has a Standard Deviation of 18 Percent

question 26

Multiple Choice

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

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

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Definitions:

Integrative Medicine

The combination of conventional medicine with complementary practices and treatments that have proven to be safe and effective.

Over-the-counter Decongestants

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Genetic Testing

Genetic testing involves analyzing DNA to identify changes in genes, chromosomes, or proteins, helping to diagnose, predict, and sometimes prevent certain diseases.

Eugenics

An attempt to selectively manipulate the gene pool in order to produce and “improve” human beings through medical science.