Suppose you have $2,000 to invest.The market portfolio has an expected return of 10.5 percent and a standard deviation of 16 percent.The risk-free rate is
Suppose you have $2,000 to invest.The market portfolio has an expected return of 10.5 percent and a standard deviation of 16 percent.The risk-free rate is 3.75 percent.
How much should you invest in the risk-free asset if you wish to have a 15 percent return on the portfolio?
a) $667
b) -$667
c) $1,333
d) -$1,333
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Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
13th edition
134417216, 978-0134417509, 013441750X, 978-0134417219
