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The total risk of Portfolios A, B and C are 49%2, 64%2 and 100% respectively. The market price of risk is 8%. The Market Portfolio
The total risk of Portfolios A, B and C are 49%2, 64%2 and 100% respectively. The market price of risk is 8%. The Market Portfolio has an expected return and a total risk of 11% and 100% respectively. You want to borrow $7,000 at the risk-free rate. Combined with your personal savings of $10,000, you will invest all these monies in the Market Portfolio. Compute your portfolio expected return and standard deviation
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