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Std. Dev E(r) 7.5 7.0 6.5 6.0 6.0 4.5 7.0 3.5 8.5 3.0 10.0 7.5 12.0 8.0 Using the table, draw the opportunity set, identify
Std. Dev | E(r) |
7.5 | 7.0 |
6.5 | 6.0 |
6.0 | 4.5 |
7.0 | 3.5 |
8.5 | 3.0 |
10.0 | 7.5 |
12.0 | 8.0 |
Using the table, draw the opportunity set, identify the minimum variance portfolio & optimal
portfolio, draw the CAL, calculate the sharp ratio of the optimal portfolio. The risk-free rate is
2%. Label the chart.
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