Question
Part A.) You plan to invest $10,000 in a complete portfolio. The complete portfolio is comprised of a risky asset with an expected rate of
Part A.) You plan to invest $10,000 in a "complete" portfolio. The complete portfolio is comprised of a risky asset with an expected rate of return of 12% and a standard deviation of 15% and a treasury bill with a rate of return of 5%.
In order to have a "complete" portfolio with an expected rate of return of 9.0%, how much of your money (in dollars) should be invested in the risky asset?
Part B.) You plan to invest $10,000 in a "complete" portfolio. The complete portfolio is comprised of a risky asset with an expected rate of return of 12% and a standard deviation of 15% and a treasury bill with a rate of return of 5%.
In order to have a "complete" portfolio with an expected rate of return of 9.0%, what is theStandard Deviationof your "complete" portfolio?
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Multinational financial management
Authors: Alan c. Shapiro
10th edition
9781118801161, 1118572386, 1118801164, 978-1118572382
