3. Consider a risky asset, A, and a risk-free asset, F. The average rate of return and the standard deviation of asset 4 are given as 12% and 4%, respectively. Moreover, the rate of return of asset F is 8%. Suppose you consider a portfolio (1/4, 3/4) for A & F, respectively, by using s1000. Answer the following questions: [M9]: What is the standard deviation of asset F? ь. 0% с. 29% |M10]: What is the rate of return of the portfolio? a. -2% d. 4% e. 6% a. 8% b. 9% c. 10% d. 11% e. 12% |M11]: What is the volatility of the portfolio? c. a. 0% ь. 1% с. 2% d. 3% e. 4%
3. Consider a risky asset, A, and a risk-free asset, F. The average rate of return and the standard deviation of asset 4 are given as 12% and 4%, respectively. Moreover, the rate of return of asset F is 8%. Suppose you consider a portfolio (1/4, 3/4) for A & F, respectively, by using s1000. Answer the following questions: [M9]: What is the standard deviation of asset F? ь. 0% с. 29% |M10]: What is the rate of return of the portfolio? a. -2% d. 4% e. 6% a. 8% b. 9% c. 10% d. 11% e. 12% |M11]: What is the volatility of the portfolio? c. a. 0% ь. 1% с. 2% d. 3% e. 4%
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
Related questions
Question
<Urgent>
please answer M9,M10,M11
![3. Consider a risky asset, A, and a risk-free asset, F. The average rate of return and the standard
deviation of asset A are given as 12% and 4%, respectively. Moreover, the rate of return of
asset F is 8%. Suppose you consider a portfolio (1/4, 3/4) for A & F, respectively, by using
S1000. Answer the following questions:
[M9]: What is the standard deviation of asset F?
d. 4%
a. -2%
b. 0%
c. 2%
e. 6%
с.
[M10]: What is the rate of return of the portfolio?
a. 8%
b. 9%
с. 10%
d. 11%
е. 12%
[M11]: What is the volatility of the portfolio?
a. 0%
b. 1%
с. 2%
d. 3%
e. 4%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1077e2db-e230-4539-af72-4ff36b7e393b%2Fe907cd52-d7f2-46b3-a948-4990bc0cf2b3%2F29112q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. Consider a risky asset, A, and a risk-free asset, F. The average rate of return and the standard
deviation of asset A are given as 12% and 4%, respectively. Moreover, the rate of return of
asset F is 8%. Suppose you consider a portfolio (1/4, 3/4) for A & F, respectively, by using
S1000. Answer the following questions:
[M9]: What is the standard deviation of asset F?
d. 4%
a. -2%
b. 0%
c. 2%
e. 6%
с.
[M10]: What is the rate of return of the portfolio?
a. 8%
b. 9%
с. 10%
d. 11%
е. 12%
[M11]: What is the volatility of the portfolio?
a. 0%
b. 1%
с. 2%
d. 3%
e. 4%
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