Expected return and standard deviation of a portfolio of a riskfree and a risky asset Portfolio i is invested in a riskfree asset and a risky portfolio p. The weight and return on the riskfree asset are Xf and rf. The expected return (E) and standard deviation (o) of portfolio p are Ep and Op. Then the E and o of portfolio i are: Ei = Xprr+ (1 - Xf) Ep Oi =(1- Xf) Op Ex. The expected return and standard deviation of Blue Skies Fund are 16% and 25%. If the riskfree rate is 4%, find the expected return and standard deviation of a portfolio i invested 30% in the riskfree asset and the remaining in the fund