(1) The standard deviation of a portfolio that has 40% of its value invested in a risk-free asset and 60% of its value invested in a risky asset with a standard deviation of 30% is: A. 18% В. 14%. C. 21% D. 24%
(1) The standard deviation of a portfolio that has 40% of its value invested in a risk-free asset and 60% of its value invested in a risky asset with a standard deviation of 30% is: A. 18% В. 14%. C. 21% D. 24%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![(1) The standard deviation of a portfolio that has 40% of its value invested in a risk-free asset
and 60% of its value invested in a risky asset with a standard deviation of 30% is:
A. 18%
В. 14%.
C. 21%
D. 24%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2d6abebd-9990-4216-bf39-94e7e640c84d%2F7d15a875-c203-4e4a-9873-64d0912884bc%2F8rz13o.png&w=3840&q=75)
Transcribed Image Text:(1) The standard deviation of a portfolio that has 40% of its value invested in a risk-free asset
and 60% of its value invested in a risky asset with a standard deviation of 30% is:
A. 18%
В. 14%.
C. 21%
D. 24%
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