Question
Portfolio Y has an expected return of 22 % and a standard deviation of 20 %. A risk-free asset has a return of 8 %.
Portfolio Y has an expected return of 22 % and a standard deviation of 20 %. A risk-free asset has a return of 8 %.
a. The expected return of an equally-weighted portfolio consisting of Y and the risk-free asset would be:
b. The standard deviation of the portfolio consisting of 50 % Y and 50 % risk-free asset is:
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Principles Of Corporate Finance
Authors: Lawrence J. Gitman, Sean M. Hennessey
2nd Canadian Edition
0321452933, 978-0321452931
