Question 7 (3 points) You are presented with information on expected returns and standard deviations for 3 assets and a portfolio that was formed with equal proportions of each asset. Asset J Asset K Asset L Portfolio Expected 0.03 0.0800 0.1200 0.0767 return Variance C 0.0914 0.0842 0.0566 Which of the following statements is true (there are several, select all that are correct) The risk free rate is 5 % If you want to decrease the risk (standard deviation) of the portfolio, you will decrease the proportion to invest in asset J and increase the proportions in Assets K and/or L If you want change the proportions to invest in the assets so that the portfolio has zero risk, the expected return of the resulting portfolio is 3% If you want to increase the risk (standard deviation) of the portfolio, you will increase the proportion to invest in asset J and reduce the proportions in Assets K and/or L If you want to form a portfolio that.has an expected return of 11 % , you would shift the proportions to invest in cach asset so that the proportion in asset L is less than 33.33% If you wish to have a portfolio with zero risk, you would invest 100 % in Asset J If you want to decrease the risk (standard deviation) of the portfolio. you will increase the proportion to invest in asset J and reduce the proportions in Assets K and/or L If you want to increase the risk (standard deviation) of the portfolio, you will increase the proportion to invest in asset L and reduce the proportions in Assets J and/or K Page 5 of 61 Previous Page Next Page Submit Qulz 4 of 9 questions saved