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Q 6 : a passive investor divides in investable funds between the risk free asset and the index that mimics the market portfolio such that
Q: a passive investor divides in investable funds between the risk free asset and the index that mimics the market portfolio such that of her funds are in the risk free assets and the rest in the market index.The risks free rate is and the expected return on the market index is The variance of the market is if you prefer to use decimal returns Calculate the standard deviation of the inventors portfolio answers choices:Q The beta of the risk free asset should always be answers choices: equal to average Beta of all assets, it depends on the state of economy Q what is the risk premium of an asset A whose Beta is if the market risk premium is and the risk free rate is answers: Q: the covariant between the market and itself is always answers: anywhere between the variance of the market
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