Question
b. The expected return of a risky portfolio in New Zealand over 2022 is 15%, while the risk-free rate is 7%. Terry wishes to set
b. The expected return of a risky portfolio in New Zealand over 2022 is 15%, while the risk-free rate is 7%. Terry wishes to set up a complete portfolio, with y (the proportion invested in the risky portfolio) = 0.75. REQUIRED: i. Define a complete portfolio. ii. Describe the mix (or asset allocation) of Terrys complete portfolio, including the percentages of each asset held. iii. What is the expected return of Terrys complete portfolio?
iv. What is the standard deviation of returns for Terrys complete portfolio? v. What is the Sharpe ratio for Terrys complete portfolio?
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
10th Edition
538482109, 1133711774, 538482389, 9780538482103, 9781133711773, 978-0538482387
