The standard deviation of the Risky-asset portfolio R' is ______

Select one:

1.

7%

2.

6%

3.

8%

4.

5%

5.

4%

In-class Manaba test 1 Stepl - The expected return and standard deviation of A are E(rK)=0.04, A=0.02 - The expected return and standard deviation of B are E(rB)=0.20, B=0.08 - Investment weights are wA=0.5 and wB=0.5 - The correlation between A and B is =0.1 In-class Manaba test 1 Step 2 Assuming that Rf=0.02 Investment weight wR=0.4 and wRf=0.6 Risk-free and risky assets Portfolio P expected return is 1, standard deviation is (