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Expected return and standard deviation of portfolio

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An investor put 60 percent of his money into a risky asset offering a 10 percent return with a standard deviation of return of 8 percent, and he put the balance of his risk-free asset offering 5 percent. What is the expected return and standard deviation of his portfolio?

Expected Return Standard Deviation

a. 6.0% 6.8%

b. 8.0% 8.0%

c. 8.0% 4.8%

d. 10.0% 6.6%

Reference no: EM133056065

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