Answered: a portfolio consisting of 35% Treasury…

a portfolio consisting of 35% Treasury bills and 65% stock Q. The return for Treasury bills is 3%. Stock Q has a return of 8% and a sta

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter6: Risk And Return

Section: Chapter Questions

Problem 14P: You have observed the following returns over time: Assume that the risk-free rate is 6% and the...

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Question

You own a portfolio consisting of 35% Treasury bills and 65% stock Q. The return for Treasury bills is 3%. Stock Q has a return of 8% and a standard deviation of return of 5%.

What's the portfolio return?

What's the portfolio risk?

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