Question: The expected return on t-bills is 5 percent and the same on the Composite index is 9.24 percent. Calculatue the expected return and standard deviation of portfoilios invested in T-Bills and the Composite index with weights as follows?
| Wb |
Wm |
|
0
|
1.0 |
| .2 |
.8 |
| .4 |
.6 |
| .6 |
.4 |
| .6 |
.2 |
| 1.0 |
0 |
Also calculate the utility levels of each portfolio inn this question with A=3. What do you conclude?