You invest $100 in a risky asset with an expected rate of return of 0.11 and a standard deviation of 0.21 and a T-bill with a rate of return of 0.045. What percentages of your money must be invested in the risk-free asset and the risky asset, respectively, to form a portfolio with a standard deviation of 0.08? Group of answer choices 50.5% and 49.50% 61.9% and 38.1% 30.1% and 69.9% 60.0% and 40.0% Cannot be determined.

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A: Optimum risk portfolio is 0.084Explanation:

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A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

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A:

Q: Jse this input to answer following questions: You manage a risky portfolio with an expected rate of…

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A:

Q: ou invest 50% of your wealth in risky asset A and 50% in the risk-free asset. E(ra) is 10% and OA is…

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A: REWARD TO RISK RATIO :  = (EXPECTED RETURN - RISK FREE RATE) / BETA

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