A Stock Fund Has a Standard Deviation of 16 Percent

question 27

Multiple Choice

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

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

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Definitions:

Empowering Employees

The practice of giving employees autonomy, authority, and encouragement to make decisions and take actions that positively impact the company.

Empowerment

The process of enabling individuals or groups to take control of their circumstances and achieve their own goals, often leading to increased autonomy and self-determination.

Delivery Gap

The difference between the service quality a company promises to deliver and the actual service quality delivered to customers.

Customer

An individual or entity that purchases goods or services from a business.