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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Definitions:

X Chromosomes

One of the two types of sex chromosomes, X and Y, that determine the genetic sex of an organism; X chromosomes carry a significant number of genes unrelated to sex.

Ovarian Failure

A condition in which the ovaries stop functioning before age 40, leading to a loss of regular menstrual cycles and infertility.

Turner Syndrome

A chromosomal disorder affecting females, characterized by the partial or complete loss of one of the two X chromosomes.

Color-Blind Recessive Allele

A genetic variant that must be inherited from both parents to express a color-blind condition, as it is recessive.