1. Consider the following data: Market Portfolio Expected Return Standard Deviation 10% 18% Risk Free Rate...
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1. Consider the following data: Market Portfolio Expected Return Standard Deviation 10% 18% Risk Free Rate 1% a) What is the expected retum of the optimal portfolio (i.e., the portfolio on the Capital Market Line) with a standard deviation of 12%? b) What is the beta of the optimal portfolio (i.e., the portfolio on the Capital Market Line) with an expected return of 15%? 1. Consider the following data: Market Portfolio Expected Return Standard Deviation 10% 18% Risk Free Rate 1% a) What is the expected retum of the optimal portfolio (i.e., the portfolio on the Capital Market Line) with a standard deviation of 12%? b) What is the beta of the optimal portfolio (i.e., the portfolio on the Capital Market Line) with an expected return of 15%?
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