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Consider the following information on a portfolio, the market,the threshold level, and the risk-free rate: Expected portfolio return 8.0% Expected market return 2.7% Expected risk-free
Consider the following information on a portfolio, the market,the threshold level, and the risk-free rate:
Expected portfolio return 8.0% Expected market return 2.7% Expected risk-free rate of return 1.6% Required threshold return 1.9% Standard deviation of the portfolio return 4.2% Standard deviation of the market return 3.8%
What is the safety-first ratio for this portfolio?
Consider the following information on a portfolio, the market,the threshold level, and the risk-free rate:
| Expected portfolio return | 8.0% |
| Expected market return | 2.7% |
| Expected risk-free rate of return | 1.6% |
| Required threshold return | 1.9% |
| Standard deviation of the portfolio return | 4.2% |
| Standard deviation of the market return | 3.8% |
What is the safety-first ratio for this portfolio?
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
978-0538453257
