B Bonds Stocks 4. (16 points) Assume that you hold a portfolio that involves only positions in three mutual funds (A, B,

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B Bonds Stocks 4 16 Points Assume That You Hold A Portfolio That Involves Only Positions In Three Mutual Funds A B 1 (32.65 KiB) Viewed 36 times

B Bonds Stocks 4. (16 points) Assume that you hold a portfolio that involves only positions in three mutual funds (A, B, and C): Mutual Fund Shares NAV (per share) A 125,000 SI 300 $50 С 600 $100 The composition of these mutual funds is as follows: Mutual Fund Cash A 100% 0% 0% B 20% 80% 0% с 10% 0% 90% Assume that: a. Cash is risk-free. b. The standard deviations of bonds and stocks are, respectively, 10% and 21%; and c. The correlation coefficient between bonds and stocks is 0.55. Find the standard deviation of your portfolio. Please round your answer to the nearest basis point (e.g., 1.23%).