Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Florence Johnston invests 80% of her money in a risky portfolio and 20% of her money in T-bills. The risky portfolio has an expected return

Florence Johnston invests 80% of her money in a risky portfolio and 20% of her money in T-bills. The risky portfolio has an expected return of 9.5% and standard deviation of 22%, and T-bills have an expected return of 3.5% and standard deviation of 0%. What should be the expected return and standard deviation of Florence's investment?

A.

8.0% and 16.5%

B.

8.0% and 17.6%

C.

8.3% and 16.5%

D.

8.3% and 17.6%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Finance In Canada

Authors: Harvey S. Rosen, Wen, Snoddon

4th Canadian Edition

0070071837, 978-0070071834

More Books

Students also viewed these Finance questions

Question

2. Avoid controlling language, should, must, have to.

Answered: 1 week ago