he risk-free rate is 5 percent.  The Market Portfolio’s expected return and standard deviation are 10 percent and 20 percent respectively.  If an investor invests one fourth of her portfolio in the risk-free security the other three fourths in the Market Portfolio, what is the standard deviation of her portfolio?  Group of answer choices 15 percent 10 percent 7.5 percent 5 percent   2.  The risk-free rate is 2 percent.  The Market Portfolio’s expected return and standard deviation are 10 percent and 25 percent respectively.  If an investor invests one fourth of her portfolio in the risk-free security the other three fourths in the Market Portfolio, what is the expected return of her portfolio?  Group of answer choices 10 percent 6 percent 4 percent 8 percent     please answer both

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
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The risk-free rate is 5 percent.  The Market Portfolio’s expected return and standard deviation are 10 percent and 20 percent respectively.  If an investor invests one fourth of her portfolio in the risk-free security the other three fourths in the Market Portfolio, what is the standard deviation of her portfolio? 
Group of answer choices
15 percent
10 percent
7.5 percent
5 percent
 
2. 
The risk-free rate is 2 percent.  The Market Portfolio’s expected return and standard deviation are 10 percent and 25 percent respectively.  If an investor invests one fourth of her portfolio in the risk-free security the other three fourths in the Market Portfolio, what is the expected return of her portfolio? 
Group of answer choices
10 percent
6 percent
4 percent
8 percent
 
 
please answer both
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