Answered

Westonci.ca offers quick and accurate answers to your questions. Join our community and get the insights you need today. Join our Q&A platform and connect with professionals ready to provide precise answers to your questions in various areas. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

Suppose you borrow at the risk-free rate an amount equal to your initial wealth and invest in a portfolio with an expected return of 16 percent and a standard deviation of returns of 20 percent. The risk-free asset has an interest rate of 4 percent. Calculate the expected return and the standard deviation of the resulting portfolio. (2 2)

Sagot :

kjjohnson06189

Answer:

The answer is

2(16) - (4) =28%

Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. We hope this was helpful. Please come back whenever you need more information or answers to your queries. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.