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2.1. You are thinking about a portfolio where you put half your money in stock A and half your money in the risk free asset
2.1. You are thinking about a portfolio where you put half your money in stock A and half your money in the risk free asset (like a Treasury bill). The risk free asset has a return of 5%.
a. What is the variance and standard deviation of the risk free asset? (1)
b. What is the covariance between stock A and the risk free asset? (1)
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