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10) The market portfolio has an expected return of 10% and standard deviation of returns of 15%. The riskless interest rate is 4%. What is
10) The market portfolio has an expected return of 10% and standard deviation of returns of 15%. The riskless interest rate is 4%. What is the maximum standard deviation an investor should accept in order to earn an expected return of 16%?
a) 15% b) 20% c) 25% d) 30% e) None of the above
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