Question
You invest $10000 in a risky asset with an expected rate of return of 0.124 and a standard deviation of 0.20 and a T-bill with
You invest $10000 in a risky asset with an expected rate of return of 0.124 and a standard deviation of 0.20 and a T-bill with a rate of return of 0.04. If you have a risk-aversion parameter of 2.5, what is the expected return of your complete portfolio?
A. 10.42%
B. 11.06%
C. 14.42%
D. 16.80%
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Personal Finance
Authors: Jeff Madura
4th Edition
0136117007, 9780136117001
