Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is the expected return and standard deviation of a portfolio consisting of $9600 invested in a risk-free asset with an 8.7-percent rate of return,

image text in transcribed
What is the expected return and standard deviation of a portfolio consisting of $9600 invested in a risk-free asset with an 8.7-percent rate of return, and $3200 invested in a risky security with a 20.7-percent rate of return and a 25.7-percent standard deviation? 19.275 percent, 17.70 percent 11.70 percent, 6.425 percent 17.70 percent, 19.275 percent 6.425 percent. 11.70 percent

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Return Distributions In Finance

Authors: Stephen Satchell, John Knight

1st Edition

0750647515, 978-0750647519

More Books

Students also viewed these Finance questions