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An investor invests 70% of her wealth in a risky asset with an expected rate of return of 15% and a variance of 5%, and she puts 30% in a Treasury bill that pays 5%. Her portfolio's expected rate of return and standard deviation are __________ and __________ respectively. Multiple Choice 10.00%; 35.65% 12.00%; 15.65% 10.00%; 6.75% 12.00%; 22.40%

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Answer: hope this helps

An investor invests 70% of her wealth in a risky asset with an expected rate of return of 15% and a variance of 5%, and she puts 30% in a Treasury bill that pays 5%. Her portfolio's expected rate of return and standard deviation are __________ and __________ respectively.

E(r) = .7(.15) + .3(.05) = .12

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

Explanation:

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