Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pls help, much thanks! Alex has invested in a portfolio with an expected return of 19% composed of a risk-free asset and a risky portfolio.

Pls help, much thanks!

Alex has invested in a portfolio with an expected return of 19% composed of a risk-free asset and a risky portfolio. The slope of the CAL where the portfolio lies is 0.80 and risk-free rate is 5%, the standard deviation of his portfolio is equal to:

a. 0.185

b. 0.175

c. 0.215

d. Need more information to calculate

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

Smart Money Concept Forex Trading Guide

Authors: Mark K. White

1st Edition

979-8358276383

More Books

Students also viewed these Finance questions