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1. (3 points) The riskfree rate is 2%. The stock market has an average return of 9% and a volatility measured by standard deviation of
1. (3 points) The riskfree rate is 2%. The stock market has an average return of 9% and a volatility measured by standard deviation of 3%. What is the maximum rate of return you can achieve if you are willing to accept a return with standard deviation of 2%? What percentage of your wealth would have to be invested in the stock market
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