An investor invests 30% of his wealth in a risky asset with an expected rate of return of 0.15 and a variance of 0.04 and 70% in a T-bill that pays 6%. His portfolio's expected return and standard deviation are ________ and ____________, respectively. 0.087; 0.06 O 0.295; 0.06 O 0.114; 0.12 0.087; 0.12 O None of the options are correct.
An investor invests 30% of his wealth in a risky asset with an expected rate of return of 0.15 and a variance of 0.04 and 70% in a T-bill that pays 6%. His portfolio's expected return and standard deviation are ________ and ____________, respectively. 0.087; 0.06 O 0.295; 0.06 O 0.114; 0.12 0.087; 0.12 O None of the options are correct.
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter12: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 1FPE: What makes for a good investment? Use the approximate yield formula or a financial calculator to...
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![An investor invests 30% of his wealth in a risky asset with an expected rate of return of 0.15 and a
variance of 0.04 and 70% in a T-bill that pays 6%. His portfolio's expected return and standard
deviation are
and _____________, respectively.
0.087; 0.06
O 0.295; 0.06
0.114; 0.12
0.087; 0.12
None of the options are correct.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd1a84e4f-15fd-454d-ae7f-e3c4cf2939e6%2Fa5d79036-ad38-464c-9209-929dad505641%2Fai9jw1u_processed.png&w=3840&q=75)
Transcribed Image Text:An investor invests 30% of his wealth in a risky asset with an expected rate of return of 0.15 and a
variance of 0.04 and 70% in a T-bill that pays 6%. His portfolio's expected return and standard
deviation are
and _____________, respectively.
0.087; 0.06
O 0.295; 0.06
0.114; 0.12
0.087; 0.12
None of the options are correct.
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