Question
You invest $100 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 12% and
You invest $100 in a complete portfolio. The complete portfolio is composed of a risky asset
with an expected rate of return of 12% and a standard deviation of 10% and a treasury bill with a
rate of return of 5%.
__________ of your complete portfolio should be invested in the risk-free asset if you want your complete portfolio to have a standard deviation of 9%.
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Contemporary Financial Management
Authors: R. Charles Moyer, William J. Kretlow, James R. Mcguigan
8th Edition
0324065914, 9780324065916
