Question: Gold Stock Market average return 8% 20% standard deviation 25% 22% Your estimate of the assets' correlation is -0.4. 12. What is the average return

Gold Stock Market average return 8% 20% standard deviation 25% 22% Your estimate of the assets' correlation is -0.4. 12. What is the average return of a portfolio composed of equal proportions of gold and stocks? a. 12% b. 14% c. 18% d. 20% e. None of the above 13. What is the standard deviation of a portfolio composed of equal proportions of gold and stocks? a. 22.5% b. 23.5% c 25.0% d. None of the above. 14. What is the average return and standard deviation of the portfolio composed of gold and stocks that has the lowest risk? a. 100% stocks, 0% gold b. 75% stocks, 25% gold c. 75% gold, 25% stocks d. 100% gold, 0% stocks e. None of the above

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