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You formed a portfolio by combining the risk-free asset and Asset B. The risk-free rate is 10% and asset A has an expected return of

You formed a portfolio by combining the risk-free asset and Asset B. The risk-free rate is 10% and asset A has an expected return of 30% and standard deviation of 40%. The standard deviation of the portfolio is 30%.

Using this information answer the following questions:

a. How much is the standard deviation of the risk-free asset?

b. How much is the weight of the risk-free asset?

c. How much is the weight of the Asset B?

How much is the expected return of your portfolio?

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