You invest $100 in a risky asset with an expected return of 12% and a standard deviation of 15%, and a T-bill that pays 5%. [i]. If you desire to form a portfolio with an expected return of 9%, what percentages of your money must you invest in the T-bill? [ii]. If you desire to form a portfolio with a standard deviation of 9%, what percentages of your money must you invest in the T-bill?
You invest $100 in a risky asset with an expected return of 12% and a standard deviation of 15%, and a T-bill that pays 5%. [i]. If you desire to form a portfolio with an expected return of 9%, what percentages of your money must you invest in the T-bill? [ii]. If you desire to form a portfolio with a standard deviation of 9%, what percentages of your money must you invest in the T-bill?
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 13P
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You invest $100 in a risky asset with an expected return of 12% and a standard deviation of 15%, and a T-bill that pays 5%. |
[i]. If you desire to form a portfolio with an expected return of 9%, what percentages of your money must you invest in the T-bill?
[ii]. If you desire to form a portfolio with a standard deviation of 9%, what percentages of your money must you invest in the T-bill?
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