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

question 111

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 of the S&P/TSX Composite is 18% with a standard deviation of 30%.What is the portfolio expected return if the standard deviation for this portfolio is 50%?

• A)12.60%
• B)27.00%
• C)30.00%
• D)47.00%

---

Definitions:

Psychoactive Substance

A chemical substance that changes brain function and results in alterations in perception, mood, or consciousness.

Cough Suppressants

Medications or substances used to control or reduce the urge to cough, helping alleviate the symptoms of various respiratory conditions.

Prescription Drugs

Medications that can only be obtained with a written order from a healthcare provider, typically because of potential side effects or risks.

Crystal Meth

A highly addictive, crystalline drug that stimulates the central nervous system, producing effects such as increased energy and euphoria.