A portfolio's expected return is 12%, its standard deviation is 20%, and the risk-free rate is 4%.
Question:
a. An increase of 1% in the expected return.
b. A decrease of 1% in the risk-free rate
c. A decrease of 1% in its standard deviation
Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
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Related Book For
Calculus Early Transcendentals
ISBN: 9781337613927
9th Edition
Authors: James Stewart, Daniel K. Clegg, Saleem Watson, Lothar Redlin
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