A Portfolio Has $1,200 Invested in a Risk-Free Asset with a 5

question 50

Multiple Choice

A portfolio has $1,200 invested in a risk-free asset with a 5 percent rate of return,and $3,800 invested in a risky asset with a 15 percent rate of return and a 20% standard deviation.What is the standard deviation of the portfolio?

• A) 4.80%
• B) 8.75%
• C) 15.20%
• D) 16.77%

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Definitions:

Executed

Completed or carried out fully; in legal terms, often refers to fully signed contracts or executed legal documents.

Property Disposal

The act of getting rid of property, whether by sale, destruction, donation, or other means, especially in the context of public or corporate assets.

Making A Will

The legal process through which an individual specifies how their assets should be distributed after death.

Testator

A person who has made a will, especially one that is legally valid.