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You are planning to invest $10,000 in a risky asset and a T-bill. The risky asset has an expected rate of return of 11% and
You are planning to invest $10,000 in a risky asset and a T-bill. The risky asset has an expected rate of return of 11% and a standard deviation of 22%. The T-bill provides a rate of return of 4.5% What dollar amounts should be invested in the risk-free asset and the risky asset, respectively, to form a complete portfolio with a standard deviation of 13.2%? Assume that you opened a brokerage account and purchased 500 shares of Bombster Energy at $60 per share on April 1 , 2021. To facilitate this transaction, you borrowed 40% of the value of the transaction from your broker. The broker charges a 6% interest per annum. On September 30, 2021 you sold Bombster Energy shares at $66 per share. Your holding period return and effective annual return are
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