There are thousands of assets in the world. The S&P 500 portfolio has had an average return
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Question:
There are thousands of assets in the world. The S&P 500 portfolio has had an average return of 8% per year over the past hundred years, and a standard deviation of 16%. The risk free rate is 2%. Assuming the CAPM is true:
A. What is the best portfolio you can form which has an expected return of 10%
B. What is the best portfolio you can form which has a standard deviation of 10%
Related Book For
Essentials of Business Statistics Communicating With Numbers
ISBN: 978-0078020544
1st edition
Authors: Sanjiv Jaggia, Alison Kelly
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