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Suppose you invest 75% of your assets in a market portfolio with an expected return of 12 percent and a standard deviation of returns of
Suppose you invest 75% of your assets in a market portfolio with an expected return of 12 percent and a standard deviation of returns of 20 percent, and you invest the remaining 25% of your assets in a risk-free asset which has an interest rate of 4 percent.
What risk (standard deviation) would you expect?
Write your answer as a percent to the nearest percent (XX)%
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