An Investor Invests 30% of His Wealth in a Risky

Multiple Choice

An investor invests 30% of his wealth in a risky asset with an expected rate of return of 0.15 and a variance of 0.04 and 70% in a T-bill that pays 6%. His portfolio's expected return and standard deviation are __________
And __________, respectively.

A) 0.114; 0.12
B) 0.087; 0.06
C) 0.295; 0.06
D) 0.087; 0.12
E) None of the options are correct.