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A portfolio of risky assets managed by a fund company has an expected return of 10%, a standard deviation of 12%, and a risk-free interest
A portfolio of risky assets managed by a fund company has an expected return of 10%, a standard deviation of 12%, and a risk-free interest rate of 5%. Client A of this fund company wants to construct an investment portfolio of risk-free assets and risk-free assets. 1. If customer A wants to obtain an expected return of 15% from the completed portfolio (the final investment portfolio), what should be the investment ratio between the risky asset portfolio and the risk-free asset? 2. What is the standard deviation of the return on client A's completed portfolio?
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