Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please. Thanks. The return on the risky portfolio is 15%. The risk-free rate is 10%. The standard deviation of return on the risky portfolio is

Please. Thanks.
image text in transcribed
The return on the risky portfolio is 15%. The risk-free rate is 10%. The standard deviation of return on the risky portfolio is 20%. If an investor invest his 30% of wealth in risky portfolio and 70% in risk-free asset, the expected return on the complete portfolio is - (Round final answer to 2 decimal places) 8.75% 6.00% 10.25% 11.50%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions