The market portfolio has an expected return of 12 percent and a standard deviation of 22 percent The risk free rate is 5 percent a What is the expected return on a well diversified portfolio with a standard deviation of 9 percent b What is the standard deviation of a well diversified portfolio with...

tr msoheightsourceauto col msowidthsourceauto br msodataplacementsamecell style0 msonumberformatGeneral textaligngeneral verticalalignbottom whitespacenowrap msorotate0 msobackgroundsourceauto msopatt ...

The market portfolio has an expected return of 12 percent and a standard deviation of 22 percent.

Question:

The market has an of 12 percent and a standard deviation of 22 percent. The risk-free rate is 5 percent.
a. What is the on a well-diversified with a standard deviation of 9 percent?
b. What is the standard deviation of a well-diversified with an of 20 percent?

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... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...