You invest 40% of your money in the treasury bill that pays 4% and 60% of your money in a risky portfolio with an expected return of 15% and a volatility of 12%. What is the expected return and volatility of your investment, respectively? 11%, 13.8% 15.2%, 22.3% 9.5%, 9.87% A. 10.6%, 7.2%

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 16P
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QUESTION 20
You invest 40% of your money in the treasury bill that pays 4% and 60% of
your money in a risky portfolio with an expected return of 15% and a volatility
of 12%. What is the expected return and volatility of your investment,
respectively?
11%, 13.8%
15.2%, 22.3%
9.5%, 9.87%
A. 10.6%, 7.2%
Transcribed Image Text:QUESTION 20 You invest 40% of your money in the treasury bill that pays 4% and 60% of your money in a risky portfolio with an expected return of 15% and a volatility of 12%. What is the expected return and volatility of your investment, respectively? 11%, 13.8% 15.2%, 22.3% 9.5%, 9.87% A. 10.6%, 7.2%
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