Question
The market portfolio has an expected return of 11.3 percent and a standard deviation of 21.3 percent. The risk-free rate is 4.3 percent. a. What
The market portfolio has an expected return of 11.3 percent and a standard deviation of 21.3 percent. The risk-free rate is 4.3 percent. |
a. | What is the expected return on a well-diversified portfolio with a standard deviation of 8.3 percent? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
Expected return | % |
b. | What is the standard deviation of a well-diversified portfolio with an expected return of 19.3 percent? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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