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Assume That an Investor Invests in One Risky and One

Question 129

Multiple Choice

Assume that an investor invests in one risky and one risk free asset. Let σm be the standard deviation of the risky asset and b the proportion of the portfolio invested in the risky asset. The standard deviation of the portfolio is then equal to:


A) Assume that an investor invests in one risky and one risk free asset. Let σ<sub>m</sub> be the standard deviation of the risky asset and b the proportion of the portfolio invested in the risky asset. The standard deviation of the portfolio is then equal to: A) B) C) (1 - b) D) b
B) Assume that an investor invests in one risky and one risk free asset. Let σ<sub>m</sub> be the standard deviation of the risky asset and b the proportion of the portfolio invested in the risky asset. The standard deviation of the portfolio is then equal to: A) B) C) (1 - b) D) b
C) (1 - b) Assume that an investor invests in one risky and one risk free asset. Let σ<sub>m</sub> be the standard deviation of the risky asset and b the proportion of the portfolio invested in the risky asset. The standard deviation of the portfolio is then equal to: A) B) C) (1 - b) D) b
D) b Assume that an investor invests in one risky and one risk free asset. Let σ<sub>m</sub> be the standard deviation of the risky asset and b the proportion of the portfolio invested in the risky asset. The standard deviation of the portfolio is then equal to: A) B) C) (1 - b) D) b

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