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An investor invests 30 percent of his wealth in a risky asset with an expected rate of return of 0.15 and a variance of 0.04 and 70 percent in a T-bill that pays 6 percent. His portfolio's expected return and standard deviation are __________ and __________, respectively.

A. 0.114; 0.12

B. 0.087; 0.06

C. 0.295; 0.12

D. 0.087; 0.12

E. none of the above

User Jaehee
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1 Answer

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The answer is B 0.087 ; 0.06
User Clark Gaebel
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