Question
You are considering investing in Assets A and B with the following returns and standard deviations (of return): E(r); SD A 8%; 24% B 4%;
You are considering investing in Assets A and B with the following returns and standard deviations (of return):
E(r); SD
A 8%; 24%
B 4%; 28%
Now suppose the risk-free rate (rf) is positive. How would that change your answer to part (a). [Hint: A simple graph with proper labeling and some simple explanations should answer the question completely.] (5 marks)
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The Social Media Handbook For Financial Advisors
Authors: Matthew Halloran
1st Edition
1118208013, 978-1118208014
