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21 May, 16:46

An investor invests 60% of her wealth in a risky asset with an expected rate of return of 20% and a variance of 25% and she puts 40% in a treasury bill that pays 5%. her portfolio's expected rate of return and standard deviation are

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  1. 21 May, 19:05
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    E (r) =.7 (.15) +.3 (.05) =.12

    standard Dev rp=.70 (.05) ^.5 = 15.7%

    Is the answer you're looking for. Good luck!

    - Just Peachy
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