A portfolio consists of two securities: a risk-free asset and an equity security.The expected return on the risk-free asset is 4.25%.The expected return of the equity security is 16% with a standard deviation of 22%.What is the portfolio standard deviation if the expected return for the portfolio is 12%?
A)6.99%
B)7.49%
C)10.55%
D)14.51%

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The Answer of A portfolio consists of two securities: a risk-free asset and an equity security.The expected return on the risk-free asset is 4.25%.The expected return of the equity security is 16% with a standard deviation of 22%.What is the portfolio standard deviation if the expected return for the portfolio is 12%?
A)6.99%
B)7.49%
C)10.55%
D)14.51%

A Portfolio Consists of Two Securities: a Risk-Free Asset and an Equity