Question
Suppose you borrow at a 4 percent risk-free rate an amount equal to your initial wealth and you invest it all in a portfolio with
Suppose you borrow at a 4 percent risk-free rate an amount equal to your initial wealth and you invest it all in a portfolio with an expected return of 15 percent and a standard deviation of 30 percent. Calculate the standard deviation of the resulting portfolio.
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To calculate the standard deviation of the resulting portfolio we need to consider the correlation b...
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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968
