7. The risk-free rate of return is 6 per cent. The market rate of return is 12...

Question:

7. The risk-free rate of return is 6 per cent. The market rate of return is 12 per cent with a standard deviation of 8 per cent. If you desire to earn a rate of return of 10 per cent, in what proportion should you hold market portfolio and the risk-free asset?

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