Suppose you invest equal amounts in a portfolio with an expected return of 16% and a standard deviation of returns of 18% and a risk-free asset with an interest rate of 4%.Calculate the expected return on the resulting portfolio.
A)10%
B)4%
C)12%
D)9%

Question

Quizplus · Accepted Answer

The Answer of Suppose you invest equal amounts in a portfolio with an expected return of 16% and a standard deviation of returns of 18% and a risk-free asset with an interest rate of 4%.Calculate the expected return on the resulting portfolio.
A)10%
B)4%
C)12%
D)9%

Suppose You Invest Equal Amounts in a Portfolio with an Expected