QUESTION 10 Your investment has a 40% chance of earning a 10% rate of return,...
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Finance
QUESTION 10
Your investment has a 40% chance of earning a 10% rate of return, a 50% chance of earning a 6% rate of return, and a 10% chance of losing 5%. What is the standard deviation of this investment?
5.14%
4.27%
7.29%
2.43%
QUESTION 11
Your complete portfolio is worth a total of $1000 and can be formed out of 2 assets: a risk free asset and a risky portfolio that has a volatility of 12%. If you want your complete portfolio to have a volatility greater than 12%, you must________
invest $1000 in the risk free asset
Invest more than $1000 in the risky portfolio
invest $500 in the risk-free asset
Invest $1000 in the risky portfolio
QUESTION 12
Your complete portfolio is worth a total of $1000 and can be formed out of 2 assets: a risk free asset that has a rate of return of 5% and a risky portfolio with an expected return of 8%. If you want your complete portfolio to have an expected rate of return equal to 5%, you must:
Invest $1000 in the risk free asset
Invest $500 in the risk free asset
Invest $1000 in the risky portfolio
nvest more than $1000 in the risky portfolio
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