You invest all our money in only two assets – stocks and bonds. Approximately 60% of your portfolio is invested in stock
Posted: Sun Jul 03, 2022 6:42 am
You invest all our money in only two assets – stocks and bonds.Approximately 60% of your portfolio is invested in stocks. Stockshave a standard deviation of 18% and bonds have a standarddeviation of 8%. The correlation between stocks and bonds is 65%.What is your portfolio standard deviation?