Question: 1) SHORT ANSWER. Answer the question using the space provided below (12.5 points each) 1) The optimal risky portfolio contains only a stock fund and

 1) SHORT ANSWER. Answer the question using the space provided below

1) SHORT ANSWER. Answer the question using the space provided below (12.5 points each) 1) The optimal risky portfolio contains only a stock fund and a bond fund. Ers) - 15%, E(T) - a 9%. The weights for each in the optimal risky portfolio are W-78.32 and WB - 21.68. The riskless rate is 3%. The do -21.86%. If you need to acheive an 8% return on your complete portfolio, what will be the standard deviation of the complete portfolio

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