A Portfolio Consists of Two Securities: a 90-Day T-Bill and the S&P/TSX

question 23

Multiple Choice

A portfolio consists of two securities: a 90-day T-bill and the S&P/TSX Composite.The expected return on the T-bill is 4.5%.The expected return on the S&P/TSX Composite is 12% with a standard deviation of 20%.What is the portfolio standard deviation if the expected return for this portfolio is 15%?

• A)8.13%
• B)12.00%
• C)16.80%
• D)28.00%

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