A Stock Fund Has a Standard Deviation of 28 Percent

question 55

Multiple Choice

A stock fund has a standard deviation of 28 percent and a bond fund has a standard deviation of 16 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) 21 percent
• D) 24 percent
• E) 27 percent

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Definitions:

Instrumental Assistance

Practical support provided to someone, typically involving tasks and actions rather than emotional support, such as help with household chores or running errands.

Tangible Help

Practical assistance provided in the form of goods, services, or physical actions, as opposed to advice or emotional support.

Prosocial Behavior

Positive actions aimed at benefiting others, including behaviors like helping, sharing, donating, cooperating, and volunteering.

Voluntary Behavior

Actions that are performed at an individual's discretion or will, without external compulsion.