Portfolio expected return and standard deviation

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You are combining a risky asset with an investment in risk-free U.S. Treasury bills with one year to maturity. The U.S. Treasury bills offer a 4 percent rate of return. The risky asset has an expected return of 8 percent and a standard deviation of 20 percent over the next year. If your total funds are $100,000 and you invest $60,000 in the risky asset, calculate your portfolio expected return and standard deviation. Show work.

Reference no: EM13876240

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