An Investor Invests 30 Percent of His Wealth in a Risky

question 13

Multiple Choice

An investor invests 30 percent of his wealth in a risky asset with an expected rate of return of 0.13 and a variance of 0.03 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;0.128
• B) 0.087;0.063
• C) 0.295;0.125
• D) 0.081;0.052
• E) 0.795;0.14