In a CAPM market, the expected return of the market portfolio is 20 , and the risk free rate is 7 The market standard deviation is 40 If you wish to have an expected return of 30 , what standard deviation should you be willing to tolerate How would you attempt to achieve this if you had $100 00 to ...

In a CAPM market, the expected return of the market portfolio is 20%, and the risk-free rate

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In a CAPM market, the of the market is 20%, and the risk-free rate is 7%. The market standard deviation is 40%. If you wish to have an of 30%, what standard deviation should you be willing to tolerate? How would you attempt to achieve this if you had $100.00 to invest?
Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...

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Question Posted: Jun 29, 2016 12:59 AM

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In a CAPM market, the expected return of the market portfolio is 20%, and the risk-free rate

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By CAPM we have i R i M R and thus we need to have 03 007 ...View the full answer

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