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

Name: 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
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Quizplus · Accepted Answer

Portfolio expected return = 20%(4%)+ 80%(15%)= 12.8%

A Portfolio Consists 20% of a Risk-Free Asset and 80