Question
Consider 3 stocks: A with E(RA)= 15% and SD(RA)=20%, B with E(RB) =14% and SD(RB)=24% and C with E(RC)=18% and SD(RC)=30%. The risk free rate
Consider 3 stocks: A with E(RA)= 15% and SD(RA)=20%, B with E(RB) =14% and SD(RB)=24% and C with E(RC)=18% and SD(RC)=30%. The risk free rate RF= 6%,
1. which stock would you combine with the risk free to form a portfolio?
2. write the equation of Capital market line
3. If you consider that your target risk is 15%, what would be the composition of your final portfolio?
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Gulf Capital And Islamic Finance The Rise Of The New Global Players
Authors: Aamir A. Rehman
1st Edition
0071621989
