Answered

Welcome to Westonci.ca, your one-stop destination for finding answers to all your questions. Join our expert community now! Explore our Q&A platform to find in-depth answers from a wide range of experts in different fields. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

Suppose that many stocks are traded in the market and that it is possible to borrow at the risk-free rate, rf. The characteristics of two of the stocks are as follows:

Stock Expected Return Standard Deviation
A 8% 40%
B 13% 60%
Correlation = -1

Calculate the expected rate of return on this risk-free portfolio?

Sagot :

We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.