Assume there is a risky asset with an expected return of 25% and standard deviation of 43% per year. The risk-free asset
Posted: Wed Jul 06, 2022 6:27 pm
Assume there is a risky asset with an expected return of 25% andstandard deviation of 43% per year. The risk-free assets areyielding 2.62% per year. Given these investment opportunities youwish to construct a complete portfolio with a standard deviation of29%. What would be your portfolio expected return, E(rp)?
a.
37.92 %
b.
18.63 %
c.
9.91 %
d.
35.80 %
e.
17.71 %
a.
37.92 %
b.
18.63 %
c.
9.91 %
d.
35.80 %
e.
17.71 %