Question
An investor invests 30 percent of his wealth in a risky asset with an expected rate of return of 0.15 and a variance of 0.04
An investor invests 30 percent of his wealth in a risky asset with an expected rate of return of 0.15 and a variance of 0.04 and 70 percent in a T-bill that pays 6 percent. His portfolio's expected return is
(a)0.087
(b)0.114
(c)0.295
(d)0.087
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Get StartedRecommended Textbook for
Finance for Non Financial Managers
Authors: Pierre Bergeron
7th edition
176530835, 978-0176530839
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