Intro

You want to invest in either a stock or Treasury bills (the risk-free asset). The stock has an expected return of 6% and a standard deviation of returns of 34%. T-bills have a return of 2%.

Attempt 1/1 for 10 pts.

Part 1

If you invest 70% in the stock and 30% in T-bills, what is your expected return for the complete portfolio?

4+ Decimals