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The risk - free rate is 5 % and the total return on the Market Portfolio is 1 2 % . The risk of the

The risk-free rate is 5% and the total return on the Market Portfolio is 12%. The risk of the Market Portfolio, measured by its standard deviation, is 20%.
You have constructed an Active Portfolio with the following characteristics:
\table[[,\table[[Active],[Portfolio]]],[Beta,1.0],[Expected Return E(rA),17%
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