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You invest $10,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 15% 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 15% and a standard deviation of 16% and a Treasury bill (the risk-free asset) with a rate of return of 5%. How much money should be invested in the Treasury bill to form a complete portfolio with a return standard deviation of 10%?
$12,500 | ||
$900 | ||
$3750 | ||
$10000 |
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