Question

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

Answer 1

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