An investor invests 40% of his wealth in a risky asset with an expected rate...
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Finance
An investor invests 40% of his wealth in a risky asset with an expected rate of return of 10% and a standard deviation of 20%, and 60% in a treasury bill that pays 4%. How much is her complete portfolio's expected rate of return and standard deviation?
A) 7.6% and 12%
B) 6.4% and 8%
C) 6.4% and 20%
D) 7.2% and 20%
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