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%
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 16P
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Question 5?
![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
9.9%; 12.6%
O 5.68%; 12.68%
O 8.15%; 10.06%
O 12%; 15.7%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3966b9a7-fe71-44cf-b953-e8752bb97164%2F778b76d4-bc59-4f56-8b7f-557a52740b01%2Fr7dw6pu_processed.jpeg&w=3840&q=75)
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
respectively.
and
9.9%; 12.6%
O 5.68%; 12.68%
O 8.15%; 10.06%
O 12%; 15.7%
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