Question: 1.2. The risk-free rate is 6%, the expected return on the market portfolio is 14%, and the standard deviation of the return on the market

1.2. The risk-free rate is 6%, the expected return on the market portfolio is 14%, and the standard deviation of the return on the market portfolio is 25%. Consider a portfolio with expected return of 16% and assume that it is on the efficient frontier.

1.2.1. Calculate the beta of this portfolio.

1.2.2. Calculate the standard deviation of its return

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