The expected return of the optimal risky portfolio is 0.19, with a standard deviation of 0.21. The risk-free rate is 0.02. DeWalt has $20,000 to
The expected return of the optimal risky portfolio is 0.19, with a standard deviation of 0.21. The risk-free rate is 0.02. DeWalt has $20,000 to invest. He wants a portfolio that has an expected return of 0.14, with the least possible risk. Rounded to the nearest dollar, how much should DeWalt invest in the risky portfolio?
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Authors: Herbert B. Mayo
13th Edition
0357127951, 978-0357127957
