Using the following data, calculate the expected return and standard deviation of this portfolio.

Assume further that the investor invests $60\%$ of his money in a risk$-$free asset and $40\%$ in a market

portfolio. What is the expected return and standard deviation of this portfolio?

$E(R_p)=W_{1}rf+W_2{P}_m$

$=0\mathrm{.}6**0\mathrm{.}05+0\mathrm{.}4**0\mathrm{.}15$

$=0,030+0,60=0\mathrm{.}09=10\%$

$s_p^2=W_{RF}^{2}sr{f}^2+W_{P{m}^2}^2{s}_M^2+2Wrf{W}_{P{m}_m}$Cov$(rf,P_m)$

Since Cov$(rf,P_m)=0,$

$s_p^2=W_{P{M}^2}{s}_m^2$

$S_p=W_{P{m}_m}{s}_m$

$={0\mathrm{.}60}^{**}0\mathrm{.}20$

$=0\mathrm{.}120$