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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% |
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