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1 . For problems 1 and 2 , use the following data: risk - free rate is 1 . 5 % ; expected return of
For problems and use the following data: riskfree rate is ; expected return of the market portfolio M is ; standard deviation of the market return is Your roommate wants advice on how to invest her $ inheritance. She wants to keep $ in safe investments but is willing to risk the other $ According to the CML what are her expected return and standard deviation? You have $ to invest.a What are the mean return and standard deviation of your portfolio, if you invest $ in a riskfree asset and $ in the market portfolio Mb You decide that the portfolio is too tame and decide to take on more risk. You invest $ in the market portfolio M and only in the riskfree asset. What are the expected return and standard deviation?
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