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Exercise: The risk-free rate is 3% and the market portfolio has a rate of return of 12% and a standard deviation of 0.22. An investor
Exercise: The risk-free rate is 3% and the market portfolio has a rate of return of 12% and a standard deviation of 0.22. An investor has just built portfolio where she invested 1.5M dollars in the market portfolio and $500000 in the risk-free asset. Calculate the standard deviation and the rate of return of her portfolio.
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