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Vicky wants to combine the market portfolio with the risk-free asset to form her optimal personal portfolio. The market portfolio has an expected return of
Vicky wants to combine the market portfolio with the risk-free asset to form her optimal personal portfolio. The market portfolio has an expected return of 12% and volatility of 15%. The risk-free rate is 5%. If she wants to limit her personal portfolio's volatility to 9%, roughly what return should she expect?
| 7% |
| 8% |
| 9% |
| 10% |
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