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Question from Investment Subject. The market has a mean return of 12% and volatility of 25%; the risk-free asset has a yield of 4%. (1)
Question from Investment Subject.
The market has a mean return of 12% and volatility of 25%; the risk-free asset has a yield of 4%.
(1) What is the expected return of an efficient portfolio that has a volatility of 15%?
(2) How much risky vs risk-free assets do you need to get this portfolio?
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