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Item Expected Return Standard Deviation Fund 1 0.1 0.2 Fund 2 0.3 0.6 Treasury bill 0.05 1) Determine the formula for the CAL supported by
| Item | Expected Return | Standard Deviation |
| Fund 1 | 0.1 | 0.2 |
| Fund 2 | 0.3 | 0.6 |
| Treasury bill | 0.05 |
1) Determine the formula for the CAL supported by Treasury bills and portfolio P (show the intercept and slope).
2) How much will an investor with A = 5 invest in funds 1 and 2 and the Treasury bills?
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Public Finance In A Changing World
Authors: Peter Birch Sorensen
1998th Edition
0333682211, 978-0333682210
