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Save A market portfolio has yielded 14.0% on average over past years. It is expected to offer a risk premium in future years of 6%.
Save A market portfolio has yielded 14.0% on average over past years. It is expected to offer a risk premium in future years of 6%. The standard deviation of the return on the market portfolio is 10% and is not expected to change in the future. The risk free rate of return is 6% D The expected return from the market portfolio is 12 % (round to nearest integer). If the overall investment portfolio comprises 40% invested in the market portfolio and 60% invested in risk-free assets, the expected return for the overall portfolio (use past average returns for the market portfolio) return is 9.2% (round to one decimal place). D The investment portfolio risk for these investments weightings is o % (round to one decimal place). o
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