The optimal portfolio of risky assets has an expected return of 10% with a standard...
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The optimal portfolio of risky assets has an expected return of 10% with a standard deviation of 15%. The risk-free rate is 5% What is the expected return and standard deviation of a portfolio that invests 75% in the risk-free asset and the rest in the optimal portfolio of risky assets? Select one: O A. The expected return is 6.25% and the standard deviation is 3.75% O B. The expected return is 6.25% and the standard deviation is 11.25% O C. The expected return is 15% and the standard deviation is 6.25% O D. The expected return is 7.5% and the standard deviation is 11.25% O E. The expected return is 3.5% and the standard deviation is 20.5%
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