Question: 4. (4 points) Your client, John Doe, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information below
4. (4 points) Your client, John Doe, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information below refers to these assets. E(R) 12.0% Standard Deviation of P 7.2% T-Bill rate 3.6% Proportion of Complete Portfolio in P 80% Proportion of Complete Portfolio in T Bills 20% a) What is the expected return on John's complete portfolio? (2 points) b) What is the standard deviation of John's complete portfolio? (2 points)
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