You Put Half of Your Money in a Stock Portfolio

Multiple Choice

You put half of your money in a stock 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 stock 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%