Question
Consider the following information: (30 points) Risky Assets: A B Expected return: 12% 8% Standard deviation: 25% 14% Correlation: .3 Risk-free rate = 3% (Treasury
Consider the following information: (30 points)
Risky Assets: A B
Expected return: 12% 8%
Standard deviation: 25% 14%
Correlation: .3
Risk-free rate = 3% (Treasury Bill Rate)
b- Plot the investment opportunity set the expected return-standard deviation relationship of possible portfolios. Make sure to label all axes and curves
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Building Financial Models
Authors: John Tjia
2nd Edition
0071608893, 978-0071608893
