Question: *Please show work and explain* Given the following information: Expected return on Stock Fund A .12 (12%) Standard deviation of the return of Stock Fund

*Please show work and explain*

Given the following information:

Expected return on Stock Fund A

.12 (12%)

Standard deviation of the return of Stock Fund A

.20 (20%)

Expected return on Bond Fund B

.07 (7%)

Standard deviation of the return of Bond Fund B

.10 (10%)

Correlation coefficient of the returns between Fund A and Fund B

.3

What is the standard deviation of a portfolio that consists of 70% of the portfolios total funds in Stock Fund A and 30% of Bond fund B?

Show your answer in percentage terms to two places to the right of decimal

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