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An investor would like to construct his complete portfolio by allocating funds between the risk-free asset and a risky portfolio that has an expected return
An investor would like to construct his complete portfolio by allocating funds between the risk-free asset and a risky portfolio that has an expected return of 15% and standard deviation of 25%. The risk free rate is 5%. Which of the following complete portfolios can this investor achieve?
- Portfolio A with E(R)=17.5% and STD=25%
- Portfolio A with E(R)=20% and STD=37.5%
- Portfolio B with E(R)=13% and STD=16%
- Portfolio C with E(R)=10% and STD=20%
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