Question
Your complete portfolio is worth a total of $1000 and can be formed out of 2 assets: a risk free asset and a risky portfolio
Your complete portfolio is worth a total of $1000 and can be formed out of 2 assets: a risk free asset and a risky portfolio that has a volatility of 12%. If you want your complete portfolio to have a volatility greater than 12%, you must________
| invest $1000 in the risk free asset | ||
| Invest more than $1000 in the risky portfolio | ||
| invest $500 in the risk-free asset | ||
| Invest $1000 in the risky portfolio |
QUESTION 12
Your complete portfolio is worth a total of $1000 and can be formed out of 2 assets: a risk free asset that has a rate of return of 5% and a risky portfolio with an expected return of 8%. If you want your complete portfolio to have an expected rate of return equal to 5%, you must:
| Invest $1000 in the risk free asset | ||
| Invest $500 in the risk free asset | ||
| Invest $1000 in the risky portfolio | ||
| nvest more than $1000 in the risky portfolio |
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Contemporary Financial Management
Authors: R. Charles Moyer, William J. Kretlow, James R. Mcguigan
7th Edition
0538877766, 9780538877763
