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Assume that the riskfree rate is 8 percent and that you can invest funds in the market portfolio which has an expected return of 18
Assume that the riskfree rate is 8 percent and that you can invest funds in the market portfolio which has an expected return of 18 percent and a standard deviation of return of 20 percent. If you have $15,000 available to invest how would you form a portfolio (in terms of dollars invested) with an expected return of 25 percent? Clearly outline each step associated with forming such a portfolio and show all calculations.
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