You manage a risky portfolio with an expected rate of return of 18% and a standard deviation
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Question:
Your client wants to invest in your portfolio and in the risk- free asset so that the overall portfolio will have an expected rate of return of 16%. What proportion (y) of the total investment must be invested in the risky portfolio? explain this?
Related Book For
Investments
ISBN: 9781259271939
9th Canadian Edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus, Lorne Switzer, Maureen Stapleton, Dana Boyko, Christine Panasian
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