Question
Assume the riskfree rate is 1.75%. Using the stock and bond portfolios from problem 1, what is the bond weight in the tangency portfolio formed
Assume the riskfree rate is 1.75%. Using the stock and bond portfolios from problem 1, what is the bond weight in the tangency portfolio formed by creating the optimal risky portfolio from this stock and bond portfolio?what is the Sharpe ratio of the tangency portfolio formed by creating the optimal risky portfolio from this stock and bond portfolio?
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A First Course in Quantitative Finance
Authors: Thomas Mazzoni
1st edition
9781108411431, 978-1108419574
