(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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Related Book For
Principles Of Finance Wtih Excel
ISBN: 9780190296384
3rd Edition
Authors: Simon Benninga, Tal Mofkadi
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