What is the expected rate of return for this investment

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A complete portfolio is composed of a risky portfolio with an expected rate of return of 14% and a standard deviation of 20% and Treasury bills with a rate of return of 5%. The complete portfolio has a standard deviation of 12%. What proportion of the complete portfolio is invested in the risky portfolio?

40%

60%

100%

12%

An investment has a 10% probability of earning a 20% rate of return, a 60% probability of earning a 10% rate of return, and a 30% probability of losing 5%. What is the expected rate of return for this investment?

8.3%

–7.0%

9.5%

6.5%

A risky portfolio has an expected rate of return of 15% and a standard deviation of 20%. The Treasury bill rate is 4%. What is the reward-to-volatility ratio for the portfolio?

0.75

0.55

0.95

0.80

Reference no: EM131873161

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