The risk-free rate of return is 1 the expected return and, Ask an Expert

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The risk-free rate of return is 1%. The expected return and standard deviation of a mutual fund are 12% and 18%, respectively. What are the expected return and standard deviation of the optimal combination of risk-free security and mutual fund for an investor with risk-aversion parameter of 4?

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Financial Management, Finance

Category:- Financial Management
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