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Maken is a first-time investor and wants to build a portfolio using only T-bills and an index fund that closely tracks the NSE 20 share
Maken is a first-time investor and wants to build a portfolio using only T-bills and an index fund that closely tracks the NSE 20 share Index. The T-bills have a return of 5%. The NSE index has a standard deviation of 20% and an expected return of 15%. Required:Draw the Capita Market Line and mark the points where the investment in the market is 0%, 25%, 75%, and 100%. Makena is also interested in determining the exact risk and return at each point. (3 marks)
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