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11. When the riskless rate is 0.04, assume that optimal combination of risky assets produces a portfolio with an expected rate of return equal to
11. When the riskless rate is 0.04, assume that optimal combination of risky assets produces a portfolio with an expected rate of return equal to 0.13 and a standard deviation of 0.10. Along the efficient trade-off line, the reward-to- risk ratio with have what value? Suppose you wish to tolerate only 3/4 of the risk present in the optimal risky portfolio. How must you divide you investment between the risk-free asset and the optimal risky portfolio. How must you divide you investment between the risk-free asset and the optimal risky portfolio? What expected rate of return do you achieve
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