Question
Your client, Bo Regard, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information below refers to these
Your client, Bo Regard, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information below refers to these assets (Warning! Read Carefully)
| E(Rp) | See Below | |
| std of P | 15% | |
| T-bill rate | 3% | |
| % invested in P | 75% | |
| % invested in T-bills | 25% | |
| Composition of P: | ||
| Stock A | 30% | 5% |
| Stock B | 40% | 11% |
| Stock C | 30% | 6% |
| Total | 100% | ? |
What is the expected return of Bos complete portfolio?
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Financial Management
Authors: Rob Quail, Ricardo J. Rodriguez
2nd Edition
1557868441, 9781557868442
