Question: please explain each step :) thank you! You can construct a portfolio using TBills (i.e. a risk free asset) and a risky asset (P). TBills

please explain each step :) thank you!

You can construct a portfolio using TBills (i.e. a risk free asset) and a risky asset (P).

TBills yield 2.2%, while the risky asset P has an expected return of 11.1% and a risk of 13.3%.

If you have a total of $20,500 and you decide to invest $8,700 in the risky asset, what will the risk of your combined portfolio be?

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