Paige invests $44\%$ of her wealth in a risky asset with an expected rate of return of $15\mathrm{.}55\%$ and a

standard deviation of $27\mathrm{.}77\%,$ and she puts the remaining in a Treasury bill that pays $3\mathrm{.}33\%.$

Paige hopes to understand her portfolio's risk and return profile. Which of the following

statement is NOT correct?

In this capital allocation process, Paige is getting a "fair" deal in the sense that she is enjoying $44\%$ of the risk

premium the risky asset can provide and that at the same time she is also bearing $44\%$ of the risk.

Since Paige is investing in a risky asset with a standard deviation of $27\mathrm{.}77\%$ and the remaining in a risky asset, her

complete portfolio should have a standard deviation of $27\mathrm{.}77\%$ too.

Paige's complete portfolio has the same Sharpe ratio as the original risky portfolio.

Because Paige's y is given $44\%,$ we can use the two equations $($as discussed in class$)$ to find her complete

portfolio's expected return and SD$.$