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%.
-The return on the risky portfolio is 15%.The risk-free rate as well as the investor's borrowing rate is 10%.The standard deviation of return on the risky portfolio is 20%.If the standard deviation on the complete portfolio is 25%,the expected return on the complete portfolio is _________.
A) 6.00%
B) 8.75 %
C) 10.00%
D) 16.25%
Correct Answer:
Verified
Correct Answer:
Verified
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