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You have $1000 available to invest. The risk free rate is 3%. The standard deviation on the risky portfolio is 10%. If you wish construct
You have $1000 available to invest. The risk free rate is 3%. The standard deviation on the risky portfolio is 10%. If you wish construct a complete portfolio with 8% standard deviation, you should borrow $750 at risk free rate and invest $1750 in the risky portfolio Invest $750 in the risk free net and $250 in the risky portfolio borrow $250 at risk free rate and invest 51250 in the risky portfolio invest $200 in the risk free asset and $800 in the risky portfolio
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