A risky asset has a standard deviation of 4 0 % and an expected return of 1

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Question:

A risky asset has a standard deviation of

40 %

and an expected return of

10 % .

A risk

-

free asset has an expected return of

4 % .

An investor wants a portfolio with a standard deviation of no more than

30 % .

What is the highest return the investor can expect to get?

Related Book For answer-question

Financial Decisions And Markets A Course In Asset Pricing

ISBN: 9780691160801

1st Edition

Authors: John Y. Campbell

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Posted Date: Mar 16, 2024 05:45 AM

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A risky asset has a standard deviation of 4 0 % and an expected return of 1

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Financial Decisions And Markets A Course In Asset Pricing

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