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Question: If the risk-free rate of return is 6%, and if a risky asset is available with a return of 9% and a standard deviation of 3%, what is the maximum rate of return you can achieve if you are willing to accept a standard deviation of 2%? What percentage of your wealth would have to be invested in the risky asset?

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M92287477

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