Question $14$

$4$ pts

The expected return and the standard deviation of the market portfolio is $10\%$ and $15\%$ respectively.

The risk$-$free rate is $2\%.$

You form a portfolio including only the risk$-$free asset and the market portfolio, and the expected return of your portfolio is $8\%.$

Find out the standard deviation of your portfolio.

$1\mathrm{.}25$

$15\%$

$11\mathrm{.}25\%$

$0\mathrm{.}75$