An Investor Develops a Portfolio with 25% in a Riskfree

question 46

Multiple Choice

An investor develops a portfolio with 25% in a riskfree asset with a return of 6% and the rest in a risky asset with expected return of 9% and standard deviation of 6%. The standard deviation for the portfolio is

• A) 20.3%.
• B) 4.5%.
• C) 0%.
• D) 27%.

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Definitions:

Culture

The shared values, beliefs, norms, and practices of a group of people, which can be transmitted from one generation to the next through language, material objects, ritual, institutions, and art.

Disorder

A disruption to normal physical or mental functions, which can affect specific organs or the entire body, including psychological conditions.

Methodology

The system of methods followed in a particular field of study or investigation.

Universal Symptoms

General signs or manifestations of a condition, disease, or change in state that are common across different populations.