Steve invests 30 percent of his wealth in a risky asset with an expected rate of return of 0.15 and a variance of 0.04 and 70 percent in a T-bill that pays 6 percent. His portfolio's expected return and standard deviation are and , respectively.

His portfolio's expected return and standard deviation are 8.7% and 6%, respectively.

Explanation:

portfolio's expected return = (amount invested in risky asset x expected rate of return) + (amount invested in T-bills x expected return) = (30% x 0.15) + (70% x 0.06) = 4.5% + 4.2% = 8.7%

standard deviation = amount invested in risky asset x √variance = 30% x √0.04 = 30% x 0.2 = 6%

what are the options

explanation:

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o