Solution-What is your expected return for complete portfolio

What is your expected return for complete portfolio

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Reference no: EM133496032

Question

You want to invest in either a stock or Treasury bills (the risk-free asset). The stock has an expected return of 11% and a standard deviation of returns of 34%. T-bills have a return of 1%.

Part 1

If you invest 80% in the stock and 20% in T-bills, what is your expected return for the complete portfolio?

Part 2

What is the standard deviation of returns for such a portfolio?

Reference no: EM133496032

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What is your expected return for complete portfolio

Reference no: EM133496032

Reference no: EM133496032

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