Question
The following stock and bond fund have a correlation of .85 and the risk free rate is 3%. Stock fund has an expected return of
The following stock and bond fund have a correlation of .85 and the risk free rate is 3%. Stock fund has an expected return of 12% and a standard deviation 30%. Bond fund Expected return is 8% and Standard Deviation is 25%. What is the expected return of the optimal risky portfolio.
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Healthcare Finance An Introduction To Accounting And Financial Management
Authors: Louis Gapenski
1st Edition
1567930905, 978-1567930900
