Question 4 (3 points) You are presented with information on expected returns and standard deviations for 2 assets and a portfolio that was formed with equal proportions of each asset. Asset J 0.03 0 Asset K 0.0800 0.0914 Asset L 0.1200 0.0842 Portfolio Expected return 0.0767 Variance 0.0566 Which of the following statements is true (there are several, select all that are correct): The risk free rate is 3% If you want change the proportions to invest in the assets so that the portfolio has zero risk, the expected return of the resulting portfolio is 3% If you wish to have a portfolio with zero risk, you would invest 100% in Asset J If you want to form a portfolio that has an expected return of 11%, you would shift the proportions to invest in each asset so that the proportion in asset L is higher than 33.33% If you want to increase the risk (standard deviation) of the portfolio, you will increase the proportion to invest in asset J and reduce the proportions in Assets K and/or L If you want to decrease the risk (standard deviation) of the portfolio, you will decrease the proportion to invest in asset J and increase the proportions in Assets K and/or L If you want to decrease the risk (standard deviation) of the portfolio, you will increase the proportion to invest in asset J and reduce the proportions in Assets K and/or L If you want to increase the risk (standard deviation) of the portfolio, you will increase the proportion to invest in asset L and reduce the proportions in Assets J and/or K Question 4 (3 points) You are presented with information on expected returns and standard deviations for 2 assets and a portfolio that was formed with equal proportions of each asset. Asset J 0.03 0 Asset K 0.0800 0.0914 Asset L 0.1200 0.0842 Portfolio Expected return 0.0767 Variance 0.0566 Which of the following statements is true (there are several, select all that are correct): The risk free rate is 3% If you want change the proportions to invest in the assets so that the portfolio has zero risk, the expected return of the resulting portfolio is 3% If you wish to have a portfolio with zero risk, you would invest 100% in Asset J If you want to form a portfolio that has an expected return of 11%, you would shift the proportions to invest in each asset so that the proportion in asset L is higher than 33.33% If you want to increase the risk (standard deviation) of the portfolio, you will increase the proportion to invest in asset J and reduce the proportions in Assets K and/or L If you want to decrease the risk (standard deviation) of the portfolio, you will decrease the proportion to invest in asset J and increase the proportions in Assets K and/or L If you want to decrease the risk (standard deviation) of the portfolio, you will increase the proportion to invest in asset J and reduce the proportions in Assets K and/or L If you want to increase the risk (standard deviation) of the portfolio, you will increase the proportion to invest in asset L and reduce the proportions in Assets J and/or K