You Invest $100 in a Risky Asset with an Expected

question 46

Multiple Choice

You invest $100 in a risky asset with an expected rate of return of 0.11 and a standard deviation of 0.21 and a T-bill with a rate of return of 0.045.
-What percentages of your money must be invested in the risk-free asset and the risky asset,respectively,to form a portfolio with a standard deviation of 0.08?

• A)301% and 69.9%
• B)50.5% and 49.50%
• C)60.0% and 40.0%
• D)61.9% and 38.1%
• E)cannot be determined

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Definitions:

Cross-Functional Teams

Teams made up of individuals from various departments or fields of expertise collaborating to achieve a shared objective.

Functional Silos

Organizational units that operate independently from one another, often leading to a lack of cross-departmental communication and coordination.

Entrepreneurial Leaders

Leaders who possess the vision, creativity, and determination to innovate and drive their organizations or ventures towards new opportunities and growth.

Feedback-Intensive Management

A management style characterized by the frequent and detailed exchange of feedback between supervisors and employees to improve performance.