Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

11. The return on the risky portfolio is 15%. The risk-free rate, as well as the investor's borrowing rate, is 10%. The standard deviation of

11. The return on the risky portfolio is 15%. The risk-free rate, as well as the investor's borrowing rate, is 10%. The standard deviation of return on the risky portfolio is 30%. If the standard deviation on the complete portfolio is 1.5%, the expected return on the complete portfolio is A. 6.00% B. 8.75% C. 10.25% D. 16.25%
image text in transcribed
11. The return on the risky portfolio is 15%. The risk-free rate, as well as the investor's borrowing rate, is 10%. The standard deviation of return on the risky portfolio is 30%. If the standard deviation on the complete portfolio is 1.5%, the expected return on the complete portfolio is A. 6.00% B. 8.75% C. 10.25% D. 16.25%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Money Talks Black Finance Experts Talk To You About Money

Authors: Fairley, Juliette

1st Edition

0471245828, 9780471245827

More Books

Students also viewed these Finance questions

Question

If he or she did write a plan, for what has it been used?

Answered: 1 week ago