Multiple Choice
An investor invests 70% of her wealth in a risky asset with an expected rate of return of 15% and a variance of 5% and she puts 30% in a Treasury bond that pays 5%. Her portfolio's expected rate of return and standard deviation are ________ and ________ respectively.
A) 10.0%, 6.7%
B) 12.0%, 22.4%
C) 12.0%, 15.7%
D) 10.0%, 35.0%
Correct Answer:
Verified
Correct Answer:
Verified
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