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WeGetReturns portfolio management company has a portfolio in which you have invested $500,000. The expected return of this portfolio is 13% with a volatility of
WeGetReturns portfolio management company has a portfolio in which you have invested $500,000. The expected return of this portfolio is 13% with a volatility of 15%. The efficient (tangent) portfolio has an expected return of 17% and a volatility of 14%. The risk-free interest rate is 3%. You are comfortable with the volatility of 15% for your personal portfolio, at this level of volatility what is the maximum expected return you could earn? 15% 10% 13% 18%
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