An investor invests 75% of his wealth in a risky asset with an expected rate of return of 28% and a standard deviation of 30% and 25% in a treasury bill that pays 3%. What is the EXPECTED RETURN of the combined portfolio of t-bills and the risky asset?
An investor invests 75% of his wealth in a risky asset with an expected rate of return of 28% and a standard deviation of 30% and 25% in a treasury bill that pays 3%. What is the EXPECTED RETURN of the combined portfolio of t-bills and the risky asset?
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 18P
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An investor invests 75% of his wealth in a risky asset with an expected
What is the EXPECTED RETURN of the combined portfolio of t-bills and the risky asset?
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