Question
An investor invests 40% of his wealth in a risky asset with an expected rate of return of 15% and a variance of 4% and
An investor invests 40% of his wealth in a risky asset with an expected rate of return of 15% and a variance of 4% and 60% in a treasury bill that pays 6%. The expected rate of return and standard deviation of her portfolio are closest to __________ and __________, respectively.
A.8.0%, 12%
B. 9.6%, 8%
C. 9.6%, 10%
D. 11.4%, 12%
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Principles Of Financial Management
Authors: Haim Levy, Marshall Sarnat
1st Edition
0137097751, 978-0137097753
