An Investor Invests 30 Percent of His Wealth in a Risky

question 18

Multiple Choice

An investor invests 30 percent of his wealth in a risky asset with an expected rate of return of 0.15 and a variance of 0.04 and 70 percent in a T-bill that pays 6 percent.His portfolio's expected return and standard deviation are _________ and __________,respectively.

• A) 0.114;0.12
• B) 0.087;0.06
• C) 0.295;0.12
• D) 0.087;0.12
• E) none of these