Question
You invest $10,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 20% and
You invest $10,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 20% and a standard deviation of 21% and a treasury bill with a rate of return of 5%. How much money should be invested in the risky asset to form a portfolio with an expected return of 8%?
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Analytical Finance Volume I
Authors: Jan R. M. Röman
1st Edition
3319340263, 978-3319340265
