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Grey highlight is the average real return. Yellow highlight is the standard deviation. a.) Briefly explain the performance of three assets (stock, market, risk-free) b.)
Grey highlight is the average real return.
Yellow highlight is the standard deviation.
a.) Briefly explain the performance of three assets (stock, market, risk-free)
b.) If you were to form a two-asset portfolio by investing in risk-free asset and the stock, what proportions of your wealth would you invest in each asset? Explain why.
c.) What are expected nominal and real returns of this portfolio? (Use the average return of an asset as its expected return).
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