Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
2018. The standard deviation of a portfolio which is invested in one risky fund and the risk-free asset is 26.6%. If the standard deviation of
2018. The standard deviation of a portfolio which is invested in one risky fund and the risk-free asset is 26.6%. If the standard deviation of the risky asset is 38% and the risk-free rate is 6% how much of the portfolio is invested in the risk-free asset?
A) 30%
B) 40%
C) 50%
D) 60%
E) 70%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started