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EXERCISE 3 An investor invests 40% of his wealth in an index mutual fund and the rest in risk-free assets earning an interest rate of
EXERCISE 3 An investor invests 40% of his wealth in an index mutual fund and the rest in risk-free assets earning an interest rate of 3.5% p.a. The returns on this portfolio are on average 6% p.a. with a standard deviation of 2.5%. (a) What is the expected return on the index fund? [5pts.] (b) What is the market price of risk in this economy? [5pts.]
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Accounting Tutor For Beginners Simple Approach To Understanding And Learning Accounting By Any One
Authors: Hamad Ali
1st Edition
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