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What is the standard deviation of this complete portfolio

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Question - You are managing a complete portfolio. The risky portion of the portfolio has an expected return of 18.00% and the standard deviation is 36.00%. The risk free asset available - which is a T-bill - has a rate of 4.00%.

You choose a 80/20 - risky to risk-free allocation (20% in the risk free asset) - we can call this portfolio a complete portfolio since it contains a risk-free asset with a risky asset (our stock portfolio). What is the standard deviation of this complete portfolio?

Reference no: EM133072266

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