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Please answer question b on this repurchase agreeneat. (4 marks) (ii) You are investing GHS100,000 in an investrpent portfolio thade up of a risky asset
Please answer question b
on this repurchase agreeneat. (4 marks) (ii) You are investing GHS100,000 in an investrpent portfolio thade up of a risky asset and a T/Bill. The expected return of the risky asset is 11% and its standard deviation is 20%. The rate of retum of the T/Bill is 3%. (a) Compute what peroentages of your funds muat be invested in the risky asset and the risk-free asset so that the expected return of your investment portfolio is 8% ( 5 marics) (b) Compute what percentages of your funds must be invested in the risk-free asset and the risly asset to form a portfolio with a standard deviation of 8%. ( 5 marles) Step by Step Solution
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