Question
Consider the following two investment opportunities: a stock fund and a bond fund with E(r S )=0.20, S =0.3, E(r B )=0.12, B =0.15. The
Consider the following two investment opportunities: a stock fund and a bond fund with E(rS)=0.20, S=0.3, E(rB)=0.12, B=0.15.
The correlation coefficient between the two funds is 0.10. The risk free rate is 0.08.
It can be verified that the portfolio that offers the highest slope has wS=0.4516 and wB=0.5484.
The slope of this portfolio is ____________. (Please round your answer to the nearest third decimal place.)
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Take The Trade A Floor Trade
Authors: Tony Wilson
1st Edition
979-8218195458
