An Investor Invests 70 Percent of His Wealth in a Risky

Multiple Choice

An investor invests 70 percent of his wealth in a risky asset with an expected rate of return of 0.15 and a variance of 0.04 and 30 percent in a T-bill that pays 5 percent.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
E) none of the above