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BFIM has a total funds of 20 000 to be used in building an efficient portfolio. at fisrt the BSE had only risky assests from

BFIM has a total funds of 20 000 to be used in building an efficient portfolio. at fisrt the BSE had only risky assests from and BFIM could only risk assets to choose from and BFIM could only build a portfolio made of these risky assets. domestic equity (E) and unlisted bonds (D) with zero correlation. The expected return and risk for A is 20% and 50% respectively and return and risk for B is 15% and 33% respectively. BFIM allocated 10% of their funds to A and the rest to B. CALCULATE EXCESS RETURN FOR EACH ASSET.

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