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If the expected return on risky assets is 15% with a 22% standard deviatio and the risk free rate is 7% . How much should
If the expected return on risky assets is
15%
with a
22%
standard deviatio and the risk free rate is
7%
. How much should we invest into the risky asse such that the resulting standard deviation equals to
17%
?\
\\\\sigma _(P)=y**\\\\sigma _(risky )\ 0.17=y**0.22->y=(0.17)/(0.22)=0.772777.3%
\ If the expected return on risky assets is
15%
with a
22%
standard deviation, and the risk free rate is
7%
. How much should we invest into the risky asset such that the resulting standard deviation equals to
12%
?
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