The risk-free rate is 5 percent. The Market Portfolio’s expected return and standard deviation are 10 percent and 20 percent respectively. If an investor invests one fourth of her portfolio in the...


The risk-free rate is 5 percent.  The Market Portfolio’s expected return and standard deviation are 10 percent and 20 percent respectively.  If an investor invests one fourth of her portfolio in the risk-free security the other three fourths in the Market Portfolio, what is the standard deviation of her portfolio?

Group of answer choices

15 percent



10 percent



7.5 percent



5 percent


2.
The risk-free rate is 2 percent.  The Market Portfolio’s expected return and standard deviation are 10 percent and 25 percent respectively.  If an investor invests one fourth of her portfolio in the risk-free security the other three fourths in the Market Portfolio, what is the expected return of her portfolio?

Group of answer choices

10 percent



6 percent



4 percent



8 percent



please answer both







Jun 02, 2022
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