e. Suppose your indifference curve touches the efficient set at ^rp = 18%. Use this information along

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e. Suppose your indifference curve touches the efficient set at ^rp = 18%. Use this information along with the graph in part d to estimate your optimal portfolio, indicating the percentage invested in each security, and estimate the portfolio’s σp and ^rp. (Hint: Use the ^rp equation to determine wA.)

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Financial Management Theory And Practice

ISBN: 9781439078105

13th Edition

Authors: Eugene F. Brigham, Michael C. Ehrhardt

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