Question: Please answer asap You are considering two mutual funds. The first is a stock fund and the second is a long-term government and corporate bond
Please answer asap
You are considering two mutual funds. The first is a stock fund and the second is a long-term government and corporate bond fund. The stock fund has an expected return of 20% and a variance of 0.36. The bond fund has an expected return of 8% and a variance of 0.16. The correlation coefficient between the stock and bond funds is 0.3. If you create an equally-weighted portfolio by using these two funds, what is your portfolio's standard deviation?
| A. | 0.335 | |
| B. | 0.166 | |
| C. | 0.407 | |
| D. | 0.283 |
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