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An investor wants to form a complete portfolio with a standard deviation of 8% per year. The risky asset has an expected
Posted: Wed Jul 06, 2022 6:43 pm
by answerhappygod
- An Investor Wants To Form A Complete Portfolio With A Standard Deviation Of 8 Per Year The Risky Asset Has An Expected 1 (31.48 KiB) Viewed 13 times
An investor wants to form a complete portfolio with a standard deviation of 8% per year. The risky asset has an expected return of 12% per year and a standard deviation of 20% per year. If the risk-free interest rate is 3% per year, what is the complete portfolio's expected return? (Hint: find out the weight of risky asset in the complete portfolio, y, first according to the standard deviations) 1) 7.5% 2) 5,8% 3) 6.2% 4) 6.6%