Suppose you invest equal amounts in a portfolio with an expected return of 12% and...

80.2K

Verified Solution

Question

Finance

Suppose you invest equal amounts in a portfolio with an expected return of 12% and a standard deviation of returns of 16% and a risk-free asset with an interest rate of 2%. calculate the expected return on the resulting Portfolio.

A. 9%

B. unable to determine without knowing the correlation coefficient

C. 8%

D. 7%

E. 12%

F. 2%

SHOW WORK PLEASE

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students