Assume that the efficient frontier in a particular security universe is given by the upper half of the parabola given by variance = (return - 0.09)2 + 0.04 and that the risk free return is 0.04.

Determine the return for the market portfolio. (Answer to 2 decimal places).

Answer____________

Hint: The diagram below shows the parabola x = ((y - 0.5)2 + 1

1.5 1- 0.5 0.5 -1,5 0