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You invest $100 in a risky asset with an expected rate of return of 0.15 and a standard deviation of 0.13 and a T-bill with
You invest $100 in a risky asset with an expected rate of return of 0.15 and a standard deviation of 0.13 and a T-bill with a rate of return of 0.05.
(1) If you want to form a portfolio with an expected rate of return of 0.09,what percentage of your money must you invest in risky portfolio?
(2) If you want to form a portfolio with an expected rate of return of 0.09,what percentage of your money must you invest in the risk free asset?
(3)What is the standard deviation of the rate of return of the complete portfolio?
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