(Portfolio of a risk-free asset and a risky stock) Consider a stock with an expected return of...

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(Portfolio of a risk-free asset and a risky stock) Consider a stock with an expected return of 6% and standard deviation of return of 15%. Suppose that the risk-free asset has a return of 1%. What will be the average return and standard deviation of a portfolio composed of 20% of the risk-free asset and 80% of the stock?

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Principles Of Finance Wtih Excel

ISBN: 9780190296384

3rd Edition

Authors: Simon Benninga, Tal Mofkadi

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