A portfolio consists 20% of a risk-free asset and 80% of a stock.The risk-free return is 4%.The stock has an expected return of 15% and a standard deviation of 30%.What's the expected return
A) 12.8%
B) 9.5%
C) 15.0%
D) 4.0%
Correct Answer:
Verified
Q19: A stock that pays no dividends is
Q20: The stock of Alpha Company has an
Q21: NARRBEGIN: Exhibit 7-1 Q22: An investor put 40% of her money Q23: Expected returns are: Q25: A disadvantage of the probabilistic approach to Q26: NARRBEGIN: Exhibit 7-2 Q27: NARRBEGIN: Exhibit 7-2 Q28: You have the following data on the Q29: Suppose that over the last 20 years,company Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
Exhibit 7-1
A) always positive.
B) always greater
Exhibit 7-2
Exhibit 7-2
