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2. You invest $1,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 16%
2. You invest $1,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 16% and a standard deviation of 20% and a Treasury bill with a rate of return of 6%. If you expect to have a value of $1,100 for your complete portfolio in 1 year, how much money do you need to place in the risk asset? What is the risk of your complete portfolio measured by standard deviation of returns?
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