Question
1) What is the expected return of the optimal risky portfolio (ORP)? 2) How much money should you invest in the ORP to achieve an
You have $6,000 to invest. You've done some security analysis and generated the following data for three stocks and Treasury bills, including weights in the optimal risky portfolio (ORP): Security Expected return (%) Variance Beta Weight in ORP (%) Stock A Stock B Stock C T-bills 12 7 5 0.04 1.2 59 0.03 1.5 18 0.02 0.8 23 1 0 0 0
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
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