An investor invests 40% of her wealth in a risky asset with an expected rate of...
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An investor invests 40% of her wealth in a risky asset with an expected rate of return of 15% and a variance of 4% and 60% in a treasury bill that pays 6%. Her portfolio's expected rate of return and standard deviation are and 8.0% 12% 9.6%, 8% 9.6%, 10% 11.4%, 12% respectively. An investor invests 40% of her wealth in a risky asset with an expected rate of return of 15% and a variance of 4% and 60% in a treasury bill that pays 6%. Her portfolio's expected rate of return and standard deviation are and 8.0% 12% 9.6%, 8% 9.6%, 10% 11.4%, 12% respectively.
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