Given that the risk-free rate is 5 the expected return on, Ask an Expert

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Given that the risk-free rate is 5%, the expected return on the market portfolio is 20%, and the standard deviation of returns to the market portfolio is 20%, answer the following questions: a. You have $100,000 to invest. How should you allocate your wealth between the risk free asset and the market portfolio in order to have a 15% expected return? b. What is the standard deviation of your portfolio in (a)?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91697681

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