Question: a stock trading for $ 2 5 today will be worth either $ 2 5 or $ 3 5 in two years. a risk -

a stock trading for $25 today will be worth either $25 or $35 in two years. a risk-free asset offers an annualized 3% return (continuously compounded) over that time period. what is the expected return and standard deviation of another portfolio that invests 30% in the risk-free asset and the rest in the optimal risky portdolio of risky assets?

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