Answer Happy

Question 2 (1 point) Stock I has an expected return of 8.4% per year and an expected return variance of 196.4% % per year. Stock J has an expected return of 7.8% per year and an expected return variance of 223.8%% per year. The covariance of the expected returns of the two stocks is 85.2% %. The risk-free interest rate is 2.5% per year. What is the standard deviation of the expected return for a portfolio that consists of $200,000 of stock 1, $300,000 of stock J, and $200,000 of the risk-free asset? 1) 8.9% 2) 7.4% 3) 9.8% 4) 6.8% 5) 10.2%