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Consider a risk-free asset with a return of 4% and a risky asset with an expected return of 12% and volatility of 16%. A portfolio
Consider a risk-free asset with a return of 4% and a risky asset with an expected return of 12% and volatility of 16%. A portfolio mixing the two assets has expected return 10%. What is the weight on the risky asset in this portfolio? 50%75%85%100% Question 4 (1 point) Consider a risk-free asset with a return of 4% and a risky asset with an expected return of 12% and volatility of 16%. As in the previous question, consider a portfolio mixing the two assets has expected return 10%. What is the volatility of this portfolio? Hint: use your answer from the previous question. 10%12%16%
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