Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Consider the following information about a risky portfolio that you manage and a risk-free...

Consider the following information about a risky portfolio that you manage and a risk-free asset: E(rP) = 15% P 18% rf 6% Your client wants to invest a proportion of her total investment budge

Consider the following information about a risky portfolio that you manage, and a risk-free asset: E(rP) = 15%, P= 18%, rf = 6%.

Your client wants to invest a proportion of her total investment budget in your risky fund to provide an expected rate of return on her overall or complete portfolio equal to 8%. What proportion should she invest in the risky portfolio, P, and what proportion in the risk-free asset? (Round your answer to 2 decimal place. Omit the "%" sign in your response.)

What will be the standard deviation of the rate of return on her portfolio? (Do not round intermediate calculations. Round your answer to 1 decimal place. Omit the "%" sign in your response.)

Consider the following information about a risky portfolio that you manage, and a risk-free asset: E(rP) = 15%, P = 18%, rf = 6%.

Aug 01 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions