Question
Suppose there are two assets. There is a risk-free investment that yields a return of 4% and a risky asset that has an expected return
Suppose there are two assets. There is a risk-free investment that yields a return of 4% and a risky asset that has an expected return of 15% and a standard deviation of 20%. You invest 30% of your portfolio into the risky asset and the remainder into the risk-free asset.
What is the volatility of the portfolio return?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
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