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Suppose a risky asset has an expected return of 11.6% and a standard deviation of 8.7%. An investor uses $11,000 in cash and $3,000 borrowed
Suppose a risky asset has an expected return of 11.6% and a standard deviation of 8.7%. An investor uses $11,000 in cash and $3,000 borrowed at the risk-free rate to invest in the risky asset. If the risk-free rate is 3.5%, what is the portfolio weight for the risk free? Enter your answer as a percentage rounded to two decimal places
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Governing Global Finance
Authors: Michele Fratianni, Paolo Savona
1st Edition
1138742147, 978-1138742147
