The risk free rate is 2%. The expected return on the market is 7.5%. You combine you risk free security with the market portfolio and end up with a portfolio that has an expected return of 4% and a standard deviation of 0.14. What must be the standard deviation of the market?

Answer rating: 100% (QA)

To determine the standard deviation of the market we can use the Capital Asset Pricing Model C... View the full answer