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Without using excel. 4. Suppose the market portfolio had an expected return of 15 percent and a standard deviation of 10 percent. The risk-free rate
Without using excel. 4. Suppose the market portfolio had an expected return of 15 percent and a standard deviation of 10 percent. The risk-free rate is 5 percent and all of the assumptions of the CML hold. What is the expected return and standard deviation if you invest your wealth: a. entirely in the risk-free asset? b. one-half in the risk-free asset and one-half in the market portfolio? all in the market portfolio? d. all in the market portfolio and borrow half again as much for additional investment in the market portfolio
Without using excel.
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