Solved

A Portfolio Consists of Two Securities: a Risk-Free Asset and an Equity

Question 75

Multiple Choice

A portfolio consists of two securities: a risk-free asset and an equity security.The expected return on the risk-free asset is 4.75%.The expected return of the equity security is 17% with a standard deviation of 23%.What is the portfolio expected return if the standard deviation for the portfolio is 18%?


A) 7.41%
B) 14.34%
C) 18.00%
D) 20.40%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions