Question: 8. The correlation coefficient for assets A and B is.35. Other statistics are as follows: expected return 12% 7% standard deviation 22% 13% The risk-free
8. The correlation coefficient for assets A and B is.35. Other statistics are as follows: expected return 12% 7% standard deviation 22% 13% The risk-free rate is 3%. The tangent portfolio has an expected return of 9.6% and a standard deviation of 14.83%. An investor wants to combine the risk-free asset along with assets A and B to form a portfolio that has an expected return of 8%. A. Find the slope of the best feasible combination line. B. Find the standard deviation of the investor's portfolio. C. Find the fraction of the investor's money invested in the risk-free asset and in assets A and B
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