Question
A. what are the weights for Fund A and Fund B if R f = 4.25%? B. What are the expected return and Standard Deviation
A. what are the weights for Fund A and Fund B if Rf = 4.25%?
B. What are the expected return and Standard Deviation of the optimal risky portfolio P?
Data:
| State of the Economy | Probability | HPR (Fund A) | HPR (Fund B) |
| Boom | .50 | 7% | 25% |
| Normal growth | .3 | -5% | 10% |
| Recession | .2 | 20% | -25% |
an an
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TExES Business And Finance Secrets Study Guide
Authors: TExES Exam Secrets Test Prep Team
1st Edition
1516706862, 978-1516706860
