Question: an investor intends to construct a portfolio using only U.S T-bills and an index fund similar to the S&P 500.the T-bills have a return of
an investor intends to construct a portfolio using only U.S T-bills and an index fund similar to the S&P 500.the T-bills have a return of 5%.The s&P has a standard deviation of 25%,and an expected return of 20%.1-draw the cml line and mark the points when the investment in the market is 0%(point A),100%(point B),and 150 point c.2-Determine the exact risk and return at each point?
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