medium · Principles of Finance risk-return-portfolio
An investor constructs a portfolio with 60% in an equity fund (σ = 20%) and 40% in a bond fund (σ = 10%).
If the correlation between the two funds is 0.20, what is the portfolio standard deviation?
- 13.42%
- 16.00%
- 12.65%
- 15.00%
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