1. You invest $1,900 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 13% and a standard deviation of 18% and a Treasury bill with a rate of return of 3%. __________ of your complete portfolio should be invested in the risky portfolio if you want your complete portfolio to have a standard deviation of 9%.

	10%
	31%
	50%

2. Your investment has a 17% chance of earning a 11% rate of return, a 74% chance of earning a 31% rate of return, and a 9% chance of losing 9%. What is the standard deviation of this investment?

13%

	27.48%
	24%
	12.77%
	51.63%

3. An investor invests 81% of her wealth in a risky asset with an expected rate of return of 12% and a variance of 6.46%, and she puts 19% in a Treasury bill that pays 3%. Her portfolio's expected rate of return and standard deviation are __________ and __________ respectively.

	10.29%;20.59%
	4.71%;11.08%
	12.15%;22.87%
	15%;52.33%