Multiple Choice
You invest $1,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 16% and a standard deviation of 20% and a treasury bill with a rate of return of 6%.
-A portfolio that has an expected value in one year of $1,100 could be formed if you _________.
A) Place 40% of your money in the risky portfolio and the rest in the risk free asset
B) Place 55% of your money in the risky portfolio and the rest in the risk free asset
C) Place 60% of your money in the risky portfolio and the rest in the risk free asset
D) Place 75% of your money in the risky portfolio and the rest in the risk free asset
Correct Answer:
Verified
Correct Answer:
Verified
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