What Is the Standard Deviation for a Portfolio That Has

question 52

Multiple Choice

What is the standard deviation for a portfolio that has $3,500 invested in a risk-free asset with 5 percent rate of return,and $6,500 invested in a risky asset with a 15 percent rate of return and a 22 percent standard deviation?

• A) 7.70%
• B) 9.75%
• C) 5.25%
• D) 14.30%

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Definitions:

Eukarya

One of the three domains of life, consisting of organisms with cells that have a nucleus enclosed within membranes, unlike bacteria and archaea.

Protista

A kingdom of simple eukaryotic organisms, usually unicellular, that are neither plants, animals, nor fungi, including amoebas, and algae.

Animalia

A kingdom of multicellular eukaryotic organisms that are typically motile and responsive to their environment.

DDT

A synthetic organic compound used as an insecticide, known for its environmental persistence and impact on ecosystems and human health.