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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%.

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Question: What is the standard deviation of the returns of the two portfolios?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91171340

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