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Assume that an investor invests all of her wealth ($1000) in a risky portfolio with expected return of 17.22% and standard deviation of 4.17%. She
Assume that an investor invests all of her wealth ($1000) in a risky portfolio with expected return of 17.22% and standard deviation of 4.17%. She borrows an additional $127 dollars at the risk-free rate of 3.25%, which she also invests in the risky portfolio. The expected return for her complete portfolio = 13.97 %. (Note: please retain at least 4 decimals in your calculations and at least 2 decimals in your final answer.)
The correct answer is: 18.99
Why is the answer 18.99?? Thanks
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