An Investor Wishes to Earn a Portfolio with a Standard $20 \%$

question 16

Multiple Choice

An investor wishes to earn a portfolio with a standard deviation of 5%,by placing funds in the risk-free and risky asset portfolios.If the risky asset portfolio has a standard deviation and return of 10% and 5% respectively,calculate the weight that needs to be invested in the risky asset to achieve a standard deviation of 5%.

• A) \( 20 \% \)
• B) \( 40 \% \)
• C) \( 50 \% \)
• D) \( 75 \% \)

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