What is the portfolio risk of stock and bond portfolio

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Reference no: EM131882223

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?

Reference no: EM131882223

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