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Suppose you want to construct a complete portfolio of risky and risk-free assets. You have constructed a portfolio of risky assets with an expected return
Suppose you want to construct a complete portfolio of risky and risk-free assets. You have constructed a portfolio of risky assets with an expected return of 25% and a standard deviation of 11%. The three-month treasury bills are offering a return of 7%. Determine the slope of the capital allocation line if you decide to invest 30% of your funds into the risk-free asset
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