An Investor Invests 40 Percent of His Wealth in a Risky

question 25

Multiple Choice

An investor invests 40 percent of his wealth in a risky asset with an expected rate of return of 0.18 and a variance of 0.10 and 60 percent in a T-bill that pays 4 percent.His portfolio's expected return and standard deviation are __________ and __________,respectively.

• A)0.114; 0.112
• B)0.087; 0.063
• C)0.096; 0.126
• D)0.087; 0.144
• E)none of the above

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Definitions:

Focus Groups

A qualitative research method where a small group of people discusses a product, service, or topic under the guidance of a moderator to gather opinions and feedback.

Obtaining Data

The process of collecting data from various sources for analysis, which can include surveys, experiments, or existing databases.

Measurement

The collection and quantification of data or the assignment of numerical values to objects, phenomena, or physical quantities.

Defect Levels

The classification or rating of defects in products, often used in quality control to indicate the severity of the defect.