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A Portfolio Consists of Two Securities: a 90-Day T-Bill and the S&P/TSX

Question 3

Multiple Choice

A portfolio consists of two securities: a 90-day T-bill and the S&P/TSX Composite.The expected return on the T-bill is 4.5 percent.The expected return of the S&P/TSX Composite is 18 percent with a standard deviation of 30 percent.What is the portfolio expected return if the standard deviation for this portfolio is 50 percent?


A) 12.60%
B) 27.00%
C) 30.00%
D) 47.00%

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