Question
An investor wants to invest money in Treasury bills and a risky fund managed by Infinity Capital. The investor wants to achieve an expected
An investor wants to invest money in Treasury bills and a risky fund managed by Infinity Capital. The investor wants to achieve an expected return of 7% on his complete portfolio. Infinity Capital has an expected return of 10% and a standard deviation of returns of 22%. T-bills have a return of 5% Part 1 Attempt 1/10 for 10 pts. What proportion of his total investment should he invest in the risky fund in order to achieve the expected return? 3+ decimals Submit Part 2 What is the standard deviation of the complete portfolio? Attempt 1/10 for 10 pts.
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An Introduction To Management Science Quantitative Approaches To Decision Making
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