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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%

?

image text in transcribed
- 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% ? P=yrisky0.17=y0.22y=0.220.17=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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