Problemdee cousineau can earn a riskfree return of 6 dee, Ask an Expert

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Problem:

Dee Cousineau can earn a riskfree return of 6%. Dee expects the stock market to return 15% and exhibit a standard deviation of 20%.

Required:

Question: If Dee chooses a portfolio of 60% stocks and 40% riskfree asset, calculate Dee's certainty equivalent return.

Note: Explain all steps comprehensively.

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Category:- Basic Finance
Reference No.:- M91162977

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