You are creating a portfolio that consists of a stock fund and a bond fund....
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Finance
You are creating a portfolio that consists of a stock fund and a bond fund. The standard deviations for the stock and bond funds are 0.15 and 0.10, respectively. The correlation between these two funds is 0.1. What is the minimum standard deviation of the portfolio?
A. 0.087
B. 0.135
C. 0.111
D. 0.296
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