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

---

Definitions:

Commands

Instructions given by a user or a program to an operating system or software to perform a specific task.

Environment Variable

A variable that describes the environment in which a program runs. It contains a name and a value, where the value is the path to the program identified by the variable name.

Program

A set of instructions that a computer uses to perform a specific task or operation.

Windows

Windows is a series of operating systems developed by Microsoft, providing a graphical interface for users to interact with their computers.