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(In excel please) You have RO 10,000 to invest. The risk free rate is 5%. The market portfolio has expected return of 12% and a
(In excel please)
You have RO 10,000 to invest. The risk free rate is 5%. The market portfolio has expected return of 12% and a risk of 25%. 1) What is the mean and the standard deviation of your investment if you invest RO 6,000 in the market portfolio and RO 4,000 in the risk free rate asset? (2 marks) 2) You borrow RO 5,000 at a risk free rate (5%) and you invest it in a market portfolio. What is the mean and the standard deviation of your new investment? (2 marks) 3) Which portfolio is better? (2 marks)Step by Step Solution
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