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Suppose that you have a risky asset that provides you with an expected return of 12% per year with 20% volatility (standard deviation). Consider a

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Suppose that you have a risky asset that provides you with an expected return of 12% per year with 20% volatility (standard deviation). Consider a risk-free asset that provides you with a 3% risk-free return. a. If you have $100,000 and invest 80% into the risky asset and 20% into the 6. b. How much will your portfolio be worth if the realized return on the risky c. If you cannot borrow money, what is the maximum possible expected return d. If you are allowed to borrow money at the risk-free rate, how can you get a risk-free asset, what is the expected return and risk of your portfolio? asset is 15%? on your portfolio, and what is the minimum? portfolio with an 18% expected return and what is the risk of this portfolio

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