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You currently have $125,000 invested in a portfolio that has an expected return of 12% and a volatility of 9 %. Suppose the risk-free rate
You currently have $125,000 invested in a portfolio that has an expected return of 12% and a volatility of 9 %. Suppose the risk-free rate is 4%, and there is another portfolio has an expected return of 24% and a volatility of 10%. a. What portfolio has a higherhigher expected return than your portfolio but with the same volatility? b. What portfolio has a lowerlower volatility than your portfolio but with the same expected return?
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