Expected return and standard deviation of a portfolio:?

An investor has a portfolio beside 60% in a riskfree asset beside a return of 5% and the rest in a risky asset next to an expected return of 12% and a standard deviation of 10%. Respectively, the expected return and standard deviation of the portfolio are

a. 7.8%, 6%.
b. 9.2%, 6%.
c. 7.8%, 4%.
d. 9.2%, 4%.

Does anyone know of a well-mannered (inexpensive)...



Answers:   Since you only enjoy one risky asset, the answer is the simple weighted average of the risk-free and risky asset:

c 7.8%, 4%

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