Multiple Choice
An investor invests 70% of his wealth in a risky asset with an expected rate of return of 0.15 and a variance of 0.04 and 30% in a T-bill that pays 5%.His portfolio's expected return and standard deviation are __________ and __________, respectively.
A) 0.120; 0.14
B) 0.087; 0.06
C) 0.295; 0.12
D) 0.087; 0.12
Correct Answer:
Verified
Correct Answer:
Verified
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