Question
Given the following information calculate the standard deviation of returns of a portfolio that combines government bonds with the market portfolio. Rm = .11 Rf
Given the following information calculate the standard deviation of returns of a portfolio that combines government bonds with the market portfolio.
Rm = .11
Rf = .05
Standard Deviation of market return = 0.13
Enter your answer as a decimal accurate to three decimal places.
Proportion invested in Rm = 0.4
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Entrepreneurial Finance
Authors: Philip J. Adelman; Alan M. Marks
6th edition
9780133099096, 133140512, 133099091, 978-0133140514
