Question: What is the expected return and standard deviation of a portfolio consisting of $ 5 4 0 0 invested in a risk - free asset

What is the expected return and standard deviation of a portfolio consisting of $5400 invested in a risk-free asset with an 7.3-percent
rate of return, and $1800 invested in a risky security with a 19.3-percent rate of return and a 24.3-percent standard deviation?
16.30 percent, 18.225 percent
10.30 percent, 6.075 percent
6.075 percent, 10.30 percent
 What is the expected return and standard deviation of a portfolio

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!