The optimal risky portfolio (P) provides expected return of 12% pa with 20% standard deviation. The risk

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The optimal risky portfolio (P) provides expected return of 12% pa with 20% standard deviation. The risk free rate of return (r_f) is 3% pa. Based on this information Robert draws the following Capital Allocation Line (CAL) to identify his complete investment portfolio. Robert expects to earn 10.2% pa return from his investments.

Capital Allocation Line (CAL) Axis Y ? E Optimal Risky Portfolio 17% [ F) C D 4 RT -3K 20% Axis X

Posted Date: Jun 23, 2024 10:07 AM

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The optimal risky portfolio (P) provides expected return of 12% pa with 20% standard deviation. The risk

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