Richard has two investment opportunities.He can invest in The Sunglasses Company or The Umbrella Company.If he diversifies his investment by putting 50% of his money into each company,what is the expected return and standard deviation of his portfolio?
A) The expected return for the portfolio is 12.50% and the standard deviation 0.00%.
B) The expected return for the portfolio is 25.00% and the standard deviation 0.00%.
C) The expected return for the portfolio is 12.50% and the standard deviation 12.50%.
D) The expected return for the portfolio is 25.00% and the standard deviation 25.00%.
Correct Answer:
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A)not putting all of your eggs
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