What is the standard deviation of ashley portfolio

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Ashley wants to form a risky portfolio by investing half of her money in stocks and half in bonds. She puts half in a stock mutual fund that has an expected return of 27% and a standard deviation of 32%; and the rest in a corporate bond mutual fund that has an expected return of 18.5% and a standard deviation of 21.5%. The stock and bond funds have a correlation of -0.25. What is the standard deviation of Ashley's portfolio?

Reference no: EM131981436

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