Multiple Choice
You invest $1000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 16% and a standard deviation of 20% and a Treasury bond with a rate of return of 6%. A portfolio that has an expected value in one year of $1100 could be formed if you place ________ of your money in the risky portfolio and the rest in the risk-free asset.
A) 40%
B) 55%
C) 60%
D) 75%
Correct Answer:
Verified
Correct Answer:
Verified
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