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Your Client, Bo Regard, Holds a Complete Portfolio That Consists

Question 49
Multiple Choice

Your client, Bo Regard, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information below refers to these assets. img What is the standard deviation of Bo's complete portfolio? A) 7.20% B) 5.40% C) 6.92% D) 4.98% E) 5.76%

Related questions
Q 50
Your client, Bo Regard, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information below refers to these assets. What is the equation of Bo's capital allocation line? A) E(rC) = 7.2 + 3.6 × Standard Deviation of P B) E(rC) = 3.6 + 1.167 × Standard Deviation of P C) E(rC) = 3.6 + 12.0 × Standard Deviation of P D) E(rC) = 0.2 + 1.167 × Standard Deviation of P E) E(rC) = 3.6 + 0.857 × Standard Deviation of P
Q 51
Your client, Bo Regard, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information below refers to these assets. What are the proportions of stocks A, B, and C, respectively, in Bo's complete portfolio? A) 40%, 25%, 35% B) 8%, 5%, 7% C) 32%, 20%, 28% D) 16%, 10%, 14% E) 20%, 12.5%, 17.5%
Q 52
To build an indifference curve, we can first find the utility of a portfolio with 100% in the risk-free asset, then A) find the utility of a portfolio with 0% in the risk-free asset. B) change the expected return of the portfolio and equate the utility to the standard deviation. C) find another utility level with 0% risk. D) change the standard deviation of the portfolio and find the expected return the investor would require to E) change the risk-free rate and find the utility level that results in the same standard deviation.
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