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Asset Allocation Across Risky and Risk Free Portfolios An investor finds that the risk free rate = 3.00% when the expected return and standard deviation
Asset Allocation Across Risky and Risk Free Portfolios An investor finds that the risk free rate = 3.00% when the expected return and standard deviation of a risky portfolio is 14% and 22% respectively. If the investor places 40.00% of their money in the risky portfolio and the rest in the risk free asset the resulting complete portfolio expected return is ______ and the standard deviation is ______.
6.59%; 10.55%
8.59%; 9.59%
5.60%; 8.60%
7.40%; 8.80%
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