You Put Half of Your Money in a Share Portfolio

Multiple Choice

You put half of your money in a share portfolio that has an expected return of 14% and a standard deviation of 24%. You put the rest of you money in a risky bond portfolio that has an expected return of 6% and a standard deviation of 12%. The share and bond portfolio have a correlation 0.55. The standard deviation of the resulting portfolio will be ________.

A) more than 18% but less than 24%
B) equal to 18%
C) more than 12% but less than 18%
D) equal to 12%