Question
Suppose that we have a risky portfolio, P, and we denote the ACTUAL risky Rate of Return by r P , the Expected Rate of
Suppose that we have a risky portfolio, P, and we denote the ACTUAL risky Rate of Return
by rP, the Expected Rate of Return on P by E(rP), its Standard Deviation by P and Risk Free Rate by rf. Suppose further E(rP) = 15%, P = 22%, and rf = 7%. What are the Expected Rate of Return, Risk Premium, Standard Deviation, and Ratio of Risk Premium to Standard Deviation for a complete portfolio with Y = .75?
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ISE Essentials Of Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus
12th International Edition
1265450099, 9781265450090
