Question
1, You are going to invest $10,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of
1, You are going to invest $10,000 in a complete portfolio. The complete portfolio is composed of
a risky asset with an expected rate of return of 15% and a standard deviation of 21%, and;
a treasury bill with a rate of return of 5%.
How much money should be invested in the risky asset to form a portfolio with an expected return of 11%?
2,
As before, you are going to invest $10,000 in a complete portfolio. The complete portfolio is composed of
a risky asset with an expected rate of return of 15% and a standard deviation of 21%, and;
a treasury bill with a rate of return of 5%.
What is the Standard Deviation of the "Complete" portfolio with an expected return of 11%?
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The Economics Of Money Banking And Finance
Authors: Peter Howells, Keith Bain
4th Edition
0273710397, 978-0273710394
