Your client, Bo Regard, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information below refers to these assets.E(Rp) 12.00 %Standard Deviation

7/31

Your client, Bo Regard, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information below refers to these assets.

E(Rp) 12.00 %

Standard Deviation of P 7.20 % T-Bill rate 3.60 %

Proportion of Complete Portfolio in P 80% Proportion of Complete Portfolio in T-Bills 20 %

Composition of P:

Stock A 40.00 % Stock B 25.00 % Stock C 35.00 % Total 100.00

What is the expected return on Bo's complete portfolio?

5.28%

8.44%

10.32%

9.62%

7.58%

Giải thích

Chọn đáp án C

Giải thích: E(rC) = 0.8 × 12.00% + 0.2 × 3.6% = 10.32%.