Question
John has an investment budget of 20,000. In addition, he has borrowed 10,000 at a fixed interest rate of 5%. He decides to invest all
John has an investment budget of 20,000. In addition, he has borrowed 10,000 at a fixed interest rate of 5%. He decides to invest all available funds in a portfolio of equities which has an expected rate of return of 12% and standard deviation of 20%. What is the standard deviation of the return on Johns overall investment portfolio?
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
9th Edition
0324656122, 978-0324656121
