Multiple Choice
A stock fund has a standard deviation of 18 percent and a bond fund has a standard deviation of 11 percent. The correlation of the two funds is .24. What is the approximate weight of the stock fund in the minimum variance portfolio?
A) 16 percent
B) 19 percent
C) 21 percent
D) 24 percent
E) 27 percent
Correct Answer:
Verified
Correct Answer:
Verified
Q2: Stock X has a standard deviation of
Q14: Diversification is investing in a variety of
Q30: You have a portfolio which is comprised
Q31: A portfolio consists of the following securities.
Q32: You have a portfolio which is comprised
Q34: Rosita owns a stock with an overall
Q36: The risk-free rate is 3.15 percent. What
Q37: You have a portfolio which is comprised
Q38: What is the variance of the returns
Q73: A portfolio comprised of which one of