Question: 3. William has determined that for Eiosal Co Ltd, expected return is 12.2%, and the standard deviation is 19.7. She has also observed that the

3. William has determined that for Eiosal Co Ltd, expected return is 12.2%, and the standard deviation is 19.7. She has also observed that the risk-free rate is 1.4%. Determine the standard deviation of a portfolio that consists of investing 37% in the risk-free asset and the remainder in Eiosal Co LtD

a. 53.1

b. Cannot be determined without knowing the covariance between the returns on the risk-free asset and the risky asset

c. 12.4

d. 7.7

e. 8.2

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