Optimal investment analysis Consider the following data on a complete portfolio composed of 50 percent (that is, z  0.50) risky assets with p 2  0.4 and E(rP)  0.20. The complete portfolio thus also has 50 percent risk-free assets with certain return of 5 percent (that is 0.05):

a What is the expected rate of return on the complete portfolio?

b What is the variance of the complete portfolio?

c What is the standard deviation of the complete portfolio (its volatility)?