THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 32

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Investment A has an expected return of 8% with a standard deviation of 2.5%.Investment B has an expected return of 6% with a standard deviation of 1.2%.Assume you invest equally in both investments and that the rates of return are independent.
-What is the expected return of your portfolio?

• A)8%
• B)7%
• C)6%
• D)4%