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Bob invests 80 percent of his wealth in a risky asset with an expected rate of return of 12% and a standard deviation of 15%.
Bob invests 80 percent of his wealth in a risky asset with an expected rate of return of 12% and a standard deviation of 15%. He invests the other 20 percent of his wealth in a T-bill that pays 2 percent. His portfolio's expected return and standard deviation are __________ and __________, respectively. A) 8%; 10% B) 10%; 15% C) 10%; 12% D) 12%; 15% E) none of the above
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