The expected return on the market is 12 and the risk free rate is 7 The standard deviation of the return on the market is 15 One investor creates a portfolio on the efficient frontier with an expected return of 10 Another creates a portfolio on the efficient frontier with an expected return of 20 W...

In this case the efficient frontier is as shown in the figure ...

The expected return on the market is 12% and the risk-free rate is 7%. The standard deviation

Question:

The on the market is 12% and the risk-free rate is 7%. The standard deviation of the return on the market is 15%. One investor creates a on the efficient frontier with an of 10%. Another creates a on the efficient frontier with an of 20%. What is the standard deviation of the return on each of the two portfolios?
Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...