Multiple Choice
A portfolio consists of two securities: a risk-free asset and an equity security.The expected return on the risk-free asset is 4.25 percent.The expected return of the equity security is 16 percent with a standard deviation of 22 percent.What is the portfolio standard deviation if the expected return for the portfolio is 12 percent?
A) 6.99%
B) 7.49%
C) 10.55%
D) 14.51%
Correct Answer:
Verified
Correct Answer:
Verified
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