Question
Joseph wants to combine the market portfolio with the risk-free asset to from his optimal personal portfolio. The market portfolio has an expected return of
Joseph wants to combine the market portfolio with the risk-free asset to from his optimal personal portfolio.
The market portfolio has an expected return of 11% and volatility of 20%.
The risk-free rate is 1%.
If Joseph wants to limit his personal portfolio's volatility to 18%, roughly what return should he expect?
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Essentials Of Business Statistics Communicating With Numbers
Authors: Sanjiv Jaggia, Alison Kelly
1st Edition
9780078020544
