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Assume that the risk free rate is 3% and the expected return on the FTSE100 is 9%. The standard deviation of the market index is
Assume that the risk free rate is 3% and the expected return on the FTSE100 is 9%. The standard deviation of the market index is 23%. If you manage a pension fund for your company and would like to achieve the expected return of 5%, how should the companys pension fund be structured in order to achieve this expected return? What is the risk of this portfolio?
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