An investor invests 60% of her wealth in the market portfolio with an expected rate of return of 12% and a variance of 0.01, and she puts the rest in Treasury bills that pays 2% per year. What is the standard deviation of the portfolio?

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y, OBJ. 3, 4, 5, 6 PR 13-4B Entries for selected corporate transactions Nav-Go Enterprises Inc. produces aeronautical navigation equipment. The stockholders' equity accounts of Nav-Go Enterprises Inc., with balances on January 1, 2014, are as follows: Common Stock, $5 stated value (900,000 shares authorized, 620,000 shares issued) Paid-In Capital in Excess of Stated Value-Common Stock.. Retained Earnings Treasury Stock (48,000 shares, at cost) ******** $3,100,000 1,240,000 4,875,000 288,000 The following selected transactions occurred during the year: Jan. 15. Paid cash dividends of $0.06 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $34,320. Mar. 15. Sold all of the treasury stock for $6.75 per share. Apr. 13. Issued 200,000 shares of common stock for $8 per share. June 14. Declared a 3% stock dividend on common stock, to be capitalized at the market price of the stock, which is $7.50 per share. July 16. Issued the certificates for the dividend declared on June 14. Oct. 30. Purchased 50,000 shares of treasury stock for $6 per share. Dec. 30. Declared a $0.08-per-share dividend on common stock. 31. Closed the credit balance of the income summary account, $775,000. 31. Closed the two dividends accounts to Retained Earnings. Instructions 1. Enter the January 1 balances in T accounts for the stockholders' equity accounts listed. Also prepare T accounts for the following: Paid-In Capital from Sale of Treasury Stock; Stock Dividends Distributable; Stock Dividends; Cash Dividends. 2. Journalize the entries to record the transactions, and post to the eight selected ac counts. 3. Prepare a retained earnings statement for the year ended December 31, 2014. 4. Prepare the Stockholders' Equity section of the December 31, 2014, balance sheet. 1., 2. Common Stock Jan. 1 Bal. Dec. 31 Bal. Paid-In Capital in Excess of Stated Value Jan. 1 Bal. Dec. 31 Bal. Retained Earnings Jan. 1 Bal. Dec. 31 Bal. Jan. 1 Bal. Dec. 31 Bal. Paid-In Capital from Sale of Treasury Stock Dec. 31 Bal. Treasury Stock Dec. 31 Bal. Dec. 31 Bal. Stock Dividends Distributable Dec. 31 Bal. Stock Dividends Cash Dividends 2. Jan. 15 Mar. 15 Apr. 13 June 14 July 16 Oct. 30 Dec. 30 31 31 Cash Dividends Payable Cash Cash Cash Treasury Stock Paid-In Capital from Sale of Treasury Stock Common Stock Paid-In Capital in Excess of Stated Value Stock Dividends Stock Dividends Distributable Paid-In Capital in Excess of Stated Value Stock Dividends Distributable Common Stock Treasury Stock Cash Cash Dividends Cash Dividends Payable Income Summary Retained Earnings Retained Earnings Stock Dividends Cash Dividends || | | | | | | | | ||| 3. 4. NAV-GO ENTERPRISES INC. Retained Earnings Statement For the Period Ended December 31, 2014 Retained earnings (January 1, 2014) Net income Less: Cash dividends Stock dividends Increase in retained earnings Retained earnings (December 31, 2014) NAV-GO ENTERPRISES INC. Balance Sheet December 31, 2014 Stockholders' Equity Paid-in capital: Common stock, $8 stated value (900,000 shares authorized, 844,600 shares issued) Excess of issue price over stated value From sale of treasury stock Total paid-in capital Retained earnings Total Deduct treasury stock (50,000 shares at cost) Total stockholders' equity y, OBJ. 3, 4, 5, 6 PR 13-4B Entries for selected corporate transactions Nav-Go Enterprises Inc. produces aeronautical navigation equipment. The stockholders' equity accounts of Nav-Go Enterprises Inc., with balances on January 1, 2014, are as follows: Common Stock, $5 stated value (900,000 shares authorized, 620,000 shares issued) Paid-In Capital in Excess of Stated Value-Common Stock.. Retained Earnings Treasury Stock (48,000 shares, at cost) ******** $3,100,000 1,240,000 4,875,000 288,000 The following selected transactions occurred during the year: Jan. 15. Paid cash dividends of $0.06 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $34,320. Mar. 15. Sold all of the treasury stock for $6.75 per share. Apr. 13. Issued 200,000 shares of common stock for $8 per share. June 14. Declared a 3% stock dividend on common stock, to be capitalized at the market price of the stock, which is $7.50 per share. July 16. Issued the certificates for the dividend declared on June 14. Oct. 30. Purchased 50,000 shares of treasury stock for $6 per share. Dec. 30. Declared a $0.08-per-share dividend on common stock. 31. Closed the credit balance of the income summary account, $775,000. 31. Closed the two dividends accounts to Retained Earnings. Instructions 1. Enter the January 1 balances in T accounts for the stockholders' equity accounts listed. Also prepare T accounts for the following: Paid-In Capital from Sale of Treasury Stock; Stock Dividends Distributable; Stock Dividends; Cash Dividends. 2. Journalize the entries to record the transactions, and post to the eight selected ac counts. 3. Prepare a retained earnings statement for the year ended December 31, 2014. 4. Prepare the Stockholders' Equity section of the December 31, 2014, balance sheet. 1., 2. Common Stock Jan. 1 Bal. Dec. 31 Bal. Paid-In Capital in Excess of Stated Value Jan. 1 Bal. Dec. 31 Bal. Retained Earnings Jan. 1 Bal. Dec. 31 Bal. Jan. 1 Bal. Dec. 31 Bal. Paid-In Capital from Sale of Treasury Stock Dec. 31 Bal. Treasury Stock Dec. 31 Bal. Dec. 31 Bal. Stock Dividends Distributable Dec. 31 Bal. Stock Dividends Cash Dividends 2. Jan. 15 Mar. 15 Apr. 13 June 14 July 16 Oct. 30 Dec. 30 31 31 Cash Dividends Payable Cash Cash Cash Treasury Stock Paid-In Capital from Sale of Treasury Stock Common Stock Paid-In Capital in Excess of Stated Value Stock Dividends Stock Dividends Distributable Paid-In Capital in Excess of Stated Value Stock Dividends Distributable Common Stock Treasury Stock Cash Cash Dividends Cash Dividends Payable Income Summary Retained Earnings Retained Earnings Stock Dividends Cash Dividends || | | | | | | | | ||| 3. 4. NAV-GO ENTERPRISES INC. Retained Earnings Statement For the Period Ended December 31, 2014 Retained earnings (January 1, 2014) Net income Less: Cash dividends Stock dividends Increase in retained earnings Retained earnings (December 31, 2014) NAV-GO ENTERPRISES INC. Balance Sheet December 31, 2014 Stockholders' Equity Paid-in capital: Common stock, $8 stated value (900,000 shares authorized, 844,600 shares issued) Excess of issue price over stated value From sale of treasury stock Total paid-in capital Retained earnings Total Deduct treasury stock (50,000 shares at cost) Total stockholders' equity

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The standard deviation of the portfolio is 001square root06002s... View the full answer