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The market portfolio has an expected return of 12.5 percent and a standard deviation of 22.5 percent. The risk-free rate is 5.5 percent.

a. What is the expected return on a well-diversified portfolio with a standard deviation of 9.5 percent? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

Expected return %

b. What is the standard deviation of a well-diversified portfolio with an expected return of 20.5 percent? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

Standard deviation %

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92069022

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