Use the following information on a risky asset, A and the market portfolio, M as determined by an investor's analysis to answer the next five questions:

E(RA) = 5.20% E(RM ) = 4.60% ²_A= 93.15 (or 0.009315) ²_M = 37.21 (or 0.003721) _A,M = 58.50 (or 0.005850). The risk-free rate RF = 2.50%.

Calculate the expected return and standard deviation of a portfolio, P that is constructed such that 60% is in Asset A and 40% in M.

		4.96% and 67.57%
		4.96% and 8.22%
		4.96% and 8.23%
		3.92% and 7.52%