What is the portfolio risk of a 6040 stockbond portfolio in


Suppose stocks and bonds have 0.94 correlation. Bonds are expected to earn 4.9 percent, and stocks are expected to earn 8.6 percent. The risk (standard deviation) of bonds and stocks are 4.7 and 20.4 percent, respectively. What is the portfolio risk of a 60/40 stock/bond portfolio in percent?

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Financial Management: What is the portfolio risk of a 6040 stockbond portfolio in
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