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III. Risk and Return of a portfolio (10 points) An investor invests 70% of her wealth in a risky asset with an expected rate of

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III. Risk and Return of a portfolio (10 points) An investor invests 70% of her wealth in a risky asset with an expected rate of return of 15% and a variance of 5% and she puts 30% in a Treasury bill that pays 5%. Calculate the expected rate of return and standard deviation of her portfolio

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