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:

Sale or Return

A sales agreement allowing the buyer to return unsold goods to the seller without obligation within a specified period.

On Approval

"On approval" is a transaction condition allowing a buyer to take possession of goods before deciding to complete the purchase, subject to the goods’ return if not satisfied.

Personalized Sweatshirts

Custom-made sweatshirts tailored to include specific designs, names, or emblems as requested by the purchaser.

Disavow the Contract

The act of denying any responsibility or support for the contract, thereby seeking to void the agreement.