You put 70% of your money in a stock portfolio that has an expected return of...

 

 

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You put 70% of your money in a stock portfolio that has an expected return of 12% and a standard deviation of 24% You put the rest of your money in a risky bond portfolio that has an expected return of 6% and a standard deviation of 12%. The stock and bond portfolios have a correlation of 3. What is the expected return for the resulting portfolio? a) 10.075% b) 10.9% Od 10.2% d) 11.225% e) 10.625% When two risky securities has a correlation of 0.3 in a portfolio, a) the portfolio standard deviation will be greater than the weighted average of the individual security standard deviations. b) the portfolio standard deviation will be less than the weighted average of the individual security standard deviations. c) the portfolio standard deviation will be equal to the weighted average of the individual security standard deviations. d) the portfolio standard deviation could be less than or equal to the weighted average of the individual security standard deviations. e) the portfolio standard deviation will always be equal to the securities' covariance. You put 70% of your money in a stock portfolio that has an expected return of 12% and a standard deviation of 24% You put the rest of your money in a risky bond portfolio that has an expected return of 6% and a standard deviation of 12%. The stock and bond portfolios have a correlation of 3. What is the expected return for the resulting portfolio? a) 10.075% b) 10.9% Od 10.2% d) 11.225% e) 10.625% When two risky securities has a correlation of 0.3 in a portfolio, a) the portfolio standard deviation will be greater than the weighted average of the individual security standard deviations. b) the portfolio standard deviation will be less than the weighted average of the individual security standard deviations. c) the portfolio standard deviation will be equal to the weighted average of the individual security standard deviations. d) the portfolio standard deviation could be less than or equal to the weighted average of the individual security standard deviations. e) the portfolio standard deviation will always be equal to the securities' covariance.

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