Question
Jessica wants to use her savings to invest in the share market. She knows that the market portfolio has a standard deviation of 30
Jessica wants to use her savings to invest in the share market. She knows that the market portfolio has a standard deviation of 30 percent and an expected return of 15 percent. The risk-free rate is 8 percent. a) Calculate the expected return of a well-diversified portfolio with a standard deviation of 10 percent. b) Calculate the standard deviation of a well-diversified portfolio with an expected return of 25 percent.
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
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