Consider a mutual fund F that invests 50% in the risk-free security and 50% in stock A,

Question:

Consider a mutual fund F that invests 50% in the risk-free security and 50% in stock A, which has and standard deviation of 10% and 12%, respectively. The risk-free rate is 5%. You borrow the risk-free asset and invest in F so as to get an of 15%. What is the standard deviation of your investment?
Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...