A Stock Fund Has a Standard Deviation of 17 Percent

question 16

Multiple Choice

A stock fund has a standard deviation of 17 percent and a bond fund has a standard deviation of 8 percent.The correlation of the two funds is .24.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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