A risky asset has an expected rate of return of 10% and standard deviation of 20% while
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Question:
- A risky asset has an expected rate of return of 10% and standard deviation of 20% while the risk-free asset has an expected return of 5%.If 80% of your portfolio is invested in the risky asset and 20% in the risk-free asset, the expected returns of the portfolio are ________ and standard deviation of your portfolio is ___________.
- 8% ; 8%
- 9% ; 16%
- 8% ; 16%
- 9% ; 8%
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