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A. Suppose you have an asset with an expected return of 0.12 and a standard deviation of 0.18. If the riskless rate is 0.04, what

A. Suppose you have an asset with an expected return of 0.12 and a standard deviation of 0.18. If the riskless rate is 0.04, what combination of the risky asset and a riskless asset would give you an expected return of 0.09? What would be the standard deviation of this combination? (5 pts.)

B.Find the proportion of risky and riskless assets contained in a combined portfolio whose expected return is 0.12 per year, where the riskless rate is 0.05 and the expected return on the all-stock portfolio is 0.08. (3 pts.)

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