An Investor Invests 70% of His Wealth in a Risky

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