Security F has an expected return of 12.0 percent and a standard deviation of 45.0 percent per year. Security G has an expected return of 17.0 percent and a standard deviation of 64.0 percent per year. a. What is the expected return on a portfolio composed of 20 percent of Security F and 80 percent of Security G? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) b. If the correlation between the returns of Security F and Security G is .15, what is the standard deviation of the portfolio described in part (a)? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)

a. 16%  b. 53.30%

Step-by-step explanation:

For Security F

Expected return

Standard deviation

Weight

For security G

Expected return

Standard deviation

Weight

a. Expected return =

Hence,  the expected return on a portfolio composed of 20 percent of Security F and 80 percent of Security G = 16%.

b. Standard deviation of the portfolio

Hence,  the standard deviation of the portfolio =53.30%

option 2 is correct.

step-by-step explanation:

we are given two inequality equation

x+y> 5 and -3x+2y< -2

first we draw the graph of both function using t-table method

equation: x+y> 5

for x=0, y=5

for x=-5, y=0

table:

x   :   0     5

y   :   5     0

test point (0,0) , 0> 5

false

equation: -3x+2y< -2

for x=0, y=-1

for x=2, y=4

table:

x   :   0     2

y   : -1       4

test point (0,0) , 0< -2

true

now we draw the graph. see the attachment for graph.

common region would be solution set.

option 2 is correct.