An Investor Invests 30% of His Wealth in a Risky

Multiple Choice

An investor invests 30% of his wealth in a risky asset with an expected rate of return of 0.13 and a variance of 0.03 and 70% in a T-bill that pays 6%.His portfolio's expected return and standard deviation are __________ and __________, respectively.

A) 0.114; 0.128
B) 0.087; 0.063
C) 0.295; 0.125
D) 0.081; 0.052