Suppose You Invest Equal Amounts in a Portfolio with an Expected

question 58

Multiple Choice

Suppose you invest equal amounts in a portfolio with an expected return of 16% and a standard deviation of returns of 18% and a risk-free asset with an interest rate of 4%.Calculate the standard deviation of the returns on the resulting portfolio.

• A)8%
• B)10%
• C)20%
• D)9%

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Definitions:

Temporal Process

A projection on the zygomatic bone that helps form the zygomatic arch, connecting the zygomatic bone to the temporal bone of the skull.

Lumbar

Pertaining to the lower part of the back or the five vertebrae in the lower spine.

Cervical

Pertaining to the neck or cervix in the human body.