Question: 1. Youd like to construct a safe portfolio and decide to invest 75% of your money into Canadian Tbills yield 4%, the rest is invested

1. Youd like to construct a safe portfolio and decide to invest 75% of your money into Canadian Tbills yield 4%, the rest is invested in an S&P 500 ETF that has an expected return of 20% and standard deviation of 9%.

A. What is the expected return of your portfolio?

B. What is the standard deviation of your portfolio?

2. You have $5,000 an invest all of it into Stock A which is expected to earn 10% with a standard deviation of 8%. You borrow another $5,000 at the risk free rate of 3% and invest that into Stock A as well.

C. What is the expected return of your portfolio?

D. What is the standard deviation of your portfolio?

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