Stu has decided to invest $6,800 in a risky asset that has an expected return of 11.3 percent and a standard deviation of 21.2 percent.He will also invest $3,200 in a risk-free asset with an expected return of 4.2 percent.The market risk premium is 7.1 percent.What is the standard deviation of his portfolio?
A) 3.30 percent
B) 11.94 percent
C) 6.87 percent
D) 9.25 percent
E) 14.42 percent
Correct Answer:
Verified
Q84: Your portfolio has a beta of 1.18
Q85: The stock of Martin Industries has a
Q86: The risk-free rate of return is 3.68
Q87: Stock A has an expected return of
Q88: The stock of Big Joe's has a
Q90: Stock M has a beta of 1.2.The
Q91: The expected return on HiLo stock is
Q92: Zoom stock has a beta of 1.46.The
Q93: You have a $1,250 portfolio which is
Q94: You would like to combine a risky
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents