Exam 13:Risky Assets-Part B

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Suppose that Ms.Lynch in Problem 1 can make up her portfolio using a risk-free asset that offers a surefire rate of return of 10% and a risky asset with an expected rate of return of 15%,with standard deviation 5.If she chooses a portfolio with an expected rate of return of 15%,then the standard deviation of her return on this portfolio will be

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Suppose that Ms.Lynch in Problem 1 can make up her portfolio using a risk-free asset that offers a surefire rate of return of 10% and a risky asset with an expected rate of return of 20%,with standard deviation 5.If she chooses a portfolio with an expected rate of return of 17.50%,then the standard deviation of her return on this portfolio will be

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Suppose that Ms.Lynch in Problem 1 can make up her portfolio using a risk-free asset that offers a surefire rate of return of 10% and a risky asset with an expected rate of return of 20%,with standard deviation 5.If she chooses a portfolio with an expected rate of return of 20%,then the standard deviation of her return on this portfolio will be

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C

Suppose that Ms.Lynch in Problem 1 can make up her portfolio using a risk-free asset that offers a surefire rate of return of 15% and a risky asset with an expected rate of return of 25%,with standard deviation 5.If she chooses a portfolio with an expected rate of return of 20%,then the standard deviation of her return on this portfolio will be

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Suppose that Ms.Lynch in Problem 1 can make up her portfolio using a risk-free asset that offers a surefire rate of return of 5% and a risky asset with an expected rate of return of 10%,with standard deviation 5.If she chooses a portfolio with an expected rate of return of 8.75%,then the standard deviation of her return on this portfolio will be

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