Risky asset has expected rate of return

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Reference no: EM131953510

1. A risky asset has an expected rate of return of 10% and standard deviation of 20% while the risk-free asset has an expected return of 5%. If 80% of your portfolio is invested in the risky asset and 20% in the risk-free asset, the expected returns of the portfolio are ________ and standard deviation of your portfolio is ___________.

8% ; 8%

9% ; 16%

8% ; 16%

9% ; 8%

2. What's the future value of a 3%, 5-year ordinary annuity that pays $800 each year? Round your answer to the nearest cent.

If this was an annuity due, what would its future value be? Round your answer to the nearest cent.

Reference no: EM131953510

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