Question
An investor invests 40% of her wealth in a risky asset with an expected rate of return of 15% and a standard deviation of 20%.
An investor invests 40% of her wealth in a risky asset with an expected rate of return of 15% and a standard deviation of 20%. The rest of her wealth is invested in the risk-free asset, which yields 6%. What are the expected return and standard deviation of her portfolio?
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Project Finance In Theory And Practice
Authors: Stefano Gatti
3rd Edition
0128114010, 978-0128114018
