Question
Construct a portfolio which comprises of market portfolio and risk-free asset. (i) Find mean and variance of your portfolio. (ii) Plot your portfolio having expected
Construct a portfolio which comprises of market portfolio and risk-free asset. (i) Find mean and variance of your portfolio. (ii) Plot your portfolio having expected return on Y-axis and standard deviation of returns on the horizontal axis. (iii) Show how a risk averse investor invest in risk-free asset and market portfolio at the same time?
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Economics For Financial Markets
Authors: Brian Kettell
1st Edition
0750653841, 978-0750653848
