3. Consider a risky asset, A, and a risk-free asset, F. The average rate of return and the standard deviation of asset A are given as 12% and 4%, respectively. Moreover, the rate of return of asset F...

please answer M9,M10,M11

Extracted text: 3. Consider a risky asset, A, and a risk-free asset, F. The average rate of return and the standard deviation of asset A are given as 12% and 4%, respectively. Moreover, the rate of return of asset F is 8%. Suppose you consider a portfolio (1/4, 3/4) for A & F, respectively, by using S1000. Answer the following questions: [M9]: What is the standard deviation of asset F? d. 4% a. -2% b. 0% c. 2% e. 6% с. [M10]: What is the rate of return of the portfolio? a. 8% b. 9% с. 10% d. 11% е. 12% [M11]: What is the volatility of the portfolio? a. 0% b. 1% с. 2% d. 3% e. 4%