Question: 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

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? OA.0.166 OB. 0.407 OC. 0.335 OD. 0.283

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. 0.166 8. 0.407 C. 0.335 D. 0.283

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