An Investor Invests 40 Percent of His Wealth in a Risky

Multiple Choice

An investor invests 40 percent of his wealth in a risky asset with an expected rate of return of 0.18 and a variance of 0.10 and 60 percent in a T-bill that pays 4 percent.His portfolio's expected return and standard deviation are __________ and __________,respectively.

A) 0.114; 0.112
B) 0.087; 0.063
C) 0.096; 0.126
D) 0.087; 0.144
E) none of the above