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QUESTION 9 An investor invests 70% of her wealth in a risky asset with an expected rate of return of 15% and a variance of
QUESTION 9 An investor invests 70% of her wealth in a risky asset with an expected rate of return of 15% and a variance of 5%, and she puts 30% in a Treasury bill that pays 5%. Her portfolio's expected rate of return and standard deviation are and __respectively A. 10%; 6.7% B. 12%, 22.4% C. 12%; 15.7% OD. 10%; 35% QUESTION 10 You invest $10,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 15% and a standard deviation of 21% and a Treasury bill with a rate of retum of 5%. How much money should be invested in the risky asset to form a portfolio with an expected return of 11%? A $6,000 B. $4,000 C. $7,000 D.$3,000 QUESTION 11 You invest $1,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 16% and a standard deviation of 20% and a Treasury bill with a rate of return of 6%. _of your complete portfolio should be invested in the risky portfolio if you want your complete portfolio to have a standard deviation of 9%. O A. 100% B. 90% C. 45% OD. 10%
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