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QUESTION 5 An investor invests 70% of her wealth in a risky asset with an expected rate of return of 12% and a return standard deviation of 18%, and she puts 30% in a Treasury bill that pays 5%. Her portfolio's expected rate of return and standard deviation are approximately respectively. and O 9.9%; 12.6% O 5.68%; 12.68% O 8.15%; 10.06% O 12%; 15.7%

QUESTION 5 An investor invests 70% of her wealth in a risky asset with an expected rate of return of 12% and a return standard deviation of 18%, and she puts 30% in a Treasury bill that pays 5%. Her portfolio's expected rate of return and standard deviation are approximately respectively. and O 9.9%; 12.6% O 5.68%; 12.68% O 8.15%; 10.06% O 12%; 15.7%

Essentials Of Investments
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
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**Question 5** An investor invests 70% of her wealth in a risky asset with an expected rate of return of 12% and a return standard deviation of 18%, and she puts 30% in a Treasury bill that pays 5%. Her portfolio's expected rate of return and standard deviation are approximately _________ and __________ respectively. - ○ 9.9%; 12.6% - ○ 5.68%; 12.68% - ○ 8.15%; 10.06% - ○ 12%; 15.7% There are no graphs or diagrams in this question, just multiple-choice answers.
Transcribed Image Text:**Question 5** An investor invests 70% of her wealth in a risky asset with an expected rate of return of 12% and a return standard deviation of 18%, and she puts 30% in a Treasury bill that pays 5%. Her portfolio's expected rate of return and standard deviation are approximately _________ and __________ respectively. - ○ 9.9%; 12.6% - ○ 5.68%; 12.68% - ○ 8.15%; 10.06% - ○ 12%; 15.7% There are no graphs or diagrams in this question, just multiple-choice answers.
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