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Use the information provided below for the risky and risk - free securities to answer questions ( a ) and ( b ) . a
Use the information provided below for the risky and riskfree securities to answer questions a and b a On the expected return standard deviation graph below, plot the investment opportunity set formed by combinations of the risky security P and the riskfree security F Assume you can both invest and borrow at the riskfree rate. b Calculate the weights in the risky and riskfree securities required to earn a return of Using these weights, calculate the standard deviation on this combined portfolio and identify the portfolio on the expected return standard deviation graph above
Use the information provided below for the risky and riskfree securities to answer questions a and b a On the expected return standard deviation graph below, plot the investment opportunity set formed by combinations of the risky security P and the riskfree security F Assume you can both invest and borrow at the riskfree rate. b Calculate the weights in the risky and riskfree securities required to earn a return of Using these weights, calculate the standard deviation on this combined portfolio and identify the portfolio on the expected return standard deviation graph above
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