The market portfolio has an expected return of 11.3 percent and a standard deviation of 18 percent.
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The market portfolio has an expected return of 11.3 percent and a standard deviation of 18 percent. The risk-free rate is 4.5 percent.
a. What is the expected return on a well-diversified portfolio with a standard deviation of 14 percent?
b. What is the standard deviation of a well-diversified portfolio with an expected return of 19 percent?
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Related Book For 
Corporate Finance
ISBN: 9781260772388
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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